Fundamentals: (1) Fed tapering predicted by economists around November. (2) Hawkish Fed (3) US economists expect a potential peak in COVID-related hospitalizations at the end of September. (4) Japan's outward M&A will reaccelerate into year-end.
Technicals: (1) The daily and weekly price charts are in an upward trajectory.
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Took some profits, but the medium-term context is still intact and yields have been rising in the dollars favor. The yield spread/curve is not in the deleveraging territory yet.
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3 Drives
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Dragon and cup-with-handle pattern emerge in the DXY, supporting ouor long trade in USDJPY:
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