Dollar Overshadows Japanese Yen Following Fed Speakers Hints On Rate Hike

The greenback enjoyed an advance in the Asian trading session after St. Louis Fed President James Bullard suggested that the global markets were well-prepared for an interest rate increase in the upcoming months. However, the yen also ticked up strongly after Japanese Prime Minister Shinzo Abe announced that he would postpone a sales tax hike by 2-1/2 years. On the hourly chart, the pair has broken the resistance at around 110.439 to as high as 111.124.  ADX has jumped up to the level of 59.33, combined with the DI+ line moving well above the DI- line. This indicates a strongly bullish trend.

Trade suggestion

Buy Stop at 111.900, Take profit at 113.970, Stop loss at 110.439

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