US Dollar Hits a 20-year High Against the Japanese Yen

MONETARY POLICY DIVERGENCE KEEPS PUSHING USD/JPY NORTH

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It gained more than 1% against JPY, and a lot less against EUR, GBP, and CHF. The greenback underperformed versus CAD, AUD, and NZD.

USD/JPY — TECHNICAL OUTLOOK

USD/JPY traded higher yesterday, breaking above the 126.80 barrier, signaling the continuation of the uptrend being in force since March 4th. That uptrend is marked by an upside line draw from the low of March 9th. Now, the pair is testing a 20-year high and looks able to continue higher.

HANG SENG — TECHNICAL OUTLOOK

Hong Kong’s Hang Seng traded lower yesterday, after hitting resistance at the key zone of 21590 on Thursday. That zone acted as a good support before being broken to the downside on April 11th and thus, as long as the index remains below it, we will consider the short-term outlook to be negative. The fact that the price has started printing lower highs and lower lows on April 4th adds to that view.

AS FOR TODAY’S EVENTS

Today, the calendar appears very light, with the only releases worth mentioning being he US building permits and housing starts for March, with both expected to have declined somewhat.

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