TRUE or FALSE? With most of the pairs breaking in favor of the buck, the USD/JPY remains above 84.80, just a few hours before London opens for trading. Will the Yen continue its strong move? We think so! We're still a bit hesitant to follow this current move as price action during August could be a bit misleading. Still, we anticipate risk aversion to be in the headlines when the dollar really starts to pick up. Perhaps we will see our expectations play out during the second week of September, following next Friday's NFP results. We expect equities to remain between 9800 and 10500 this week.
One final note -- there is a potential for the recent break to gain steam and continue strengthening the dollar and the yen for the remainder of the week.
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