Short covering post the Tokyo fix saw the....>

DOLLAR: Short covering post the Tokyo fix saw the dollar extend gains across

most of G10, except CAD. USDJPY touched Y109.00 before encountering profit take

sales off the high to hold Y108.85/90 at the European crossover. The DXY closed

below the 100-dma yesterday for the first time since September and the

subsequent failure to reclaim 96 keeps the recent downtrend intact.

Double-bottom support is seen at 95.60/65, a break opens 95.29 which represents

the 61.8% retracement of 93.81-97.69. The broad USD strength has seen Gold

extend its corrective pullback off yesterday's traded high ($1295.13) toward the

$1280 area. Bulls continue to search for a topside break of the Jan 4 high at

$1298.60, before challenging the $1300 pivot level. Broken channel top

resistance-turned-support comes in today at $1277.82, a break opens a move

toward the 38.2% fibo of $1233.02-1298.60 at $1273.55.