USD/JPY Drops Below 97

The dollar crumbled to seven-week lows on Thursday after the yen ploughed through major resistance levels in a stop-loss frenzy, while sterling joined the fight as the market brought forward the day when UK rates might start to rise.

The dollar index broke down to 81.229, bringing its losses to 4 percent in just a month and questioning the view that this was just a fleeting correction in a long-term uptrend.

“The fact that the USD cannot rally decisively off this support area of 81.50/30 is concerning us and suggesting that we may be about to see a renewed period of USD weakness,” says CitiFX Technicals.


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