Forex
US Dollar Rallies Above 100.00 as USD/JPY Remains a Wildcard
The US dollar has rallied significantly since last Wednesday's rate hike, pushing the DXY index above the 100.00 level and testing resistance at 100.64.
One of the main drivers of this USD strength is the USD/JPY pair, where a crowded carry trade remains in place.
While dual intervention can force pullbacks, a larger reversal in the USD/JPY theme would require a significant shift in fundamental dynamics.
Pairs like EUR/USD and GBP/USD are also being pulled along by the strong US dollar, testing fresh lower-lows and nearing oversold territory on the daily RSI.