Surprise Price Acceleration Signals Continuation Of US Dollar Rally

TECHNICAL ANALYSIS

Max McKegg, principal of FX advisory firm Technical Research Limited, looks at the short- to mid-term prospects for dollar/yen and euro/dollar

The US$/Yen reached a major bottom earlier this year at 101.25 and then moved up strongly to 111.75 in late February to complete the first leg of what was expected to be a rally to a multi-year high. Since then, however, the dollar has been undergoing a complex correction that has dragged on for six months.

Now there are signs that the uptrend is about