The US$ is still in focus as it reacted to news out of Day 1 from Jackson Hole. I am no economist so I look to other, more learned, commentary on the fundamentals about the reaction of the US$ in this regard. To that end, I suggest Kathy Lien’s view is worth a read. I am a chartist and note that the US$ index remains range-bound in a bullish-reversal descending wedge and on low and declining momentum. Thus, I will keep watch for any momentum-based trend line breakout.

Data: Watch today for any news from the Jackson Hole Symposium and a BoE Gov Bailey speech.

Earnings:

DXY 4hr: no breakout yet so watch for any momentum-based trend line breakout:

Trend line breakouts:

AUD/USD 4hr: this TL b/o has given up to 100 pips:

AUD/JPY 4hr: this TL b/o above 76 has given up to 130 pips and note how price is now testing the 7-year bear TL so watch this for any new make or break:

USD/JPY 4hr: this new TL b/o has little momentum yet so caution needed:

GBP/JPY 4hr: this bounce off TL support has given up to 240 pips and is now above the key 140 level so watch for any continuation. Remember the monthly chart here though and how some mean-reversion to the upside would not be out of order:

Other charts very similar to those of yesterday’s post.