The dollar index run out of steam ahead of...>

DOLLAR: The dollar index run out of steam ahead of 90 in early dealing this

week, as the JPY led the fightback against the USD and EURUSD topped 1.2300.

- The JPY moved to best levels vs. the USD despite comments from BoJ Governor

Kuroda who reiterated that the BoJ will continues its powerful monetary easing

to achieve its inflation goal.

- From a technical perspective the DXY's close above the 21-DMA (89.512) eased

bearish pressure with above 91.751 needed to shift initial focus to 92.640 and

overall focus to 94.219-95.149. The lack of follow through is less than ideal

with bears needing a close below 89.442 to signal a false break of the 21-DMA,

return initial focus to 2018 lows and overall focus to 86.515-878 where the

weekly bear channel base, Nov 2014 monthly low LT rising weekly TL are situated.