Has the demise of the dollar been greatly exaggerated? It sure is showing some fight today as we see broader market sentiment pull back from the optimistic and the sense of relief towards the end of last week. The earlier remarks by Fed board member Waller is also something to consider, as it reinforces the notion that the central bank isn't turning the other cheek just yet.
While it is too early to call this the turning point and a top for the dollar, it is fair enough to say that dollar gains won't come as easily anymore as it did for most of this year in the run up to October.
For now, the technicals will continue to do the work in gauging market appetite as we try to digest the recent moves and wait to hear from more Fed speakers in the next few weeks.
USD/JPY is now back above 140.00 as the pair moves up by 1% today. That's a decent showing by buyers in holding the line but they still have to get through the 100-day moving average (red line) at 140.79 to really convince of any solid bounce back after the sharp drop since Thursday.
