USD weakness post-FOMC was expected as concerns about YCC created fear in bond markets. BoJ and Fed being on divergent paths may bring back some normalcy to interest rate-FX relationship, which is driven by yield not flow of money normally. Some USD weakness may persist as long as overhang of weak economic data continues.
Key Levels: Support at 154.616 | Resistance at 158.232
Investor Takeaway: RSI below MA line trending downward with increased MACD selling pressures; YCC fears and weak data overhang support near-term dollar weakness despite divergence.
