Dollar correction's end

2022年11月4日

dxy charts and dollar vs japanese yen chart let's compare. About last weeks. The Central Bank of Japan conducted multiple foreign exchange interventions to save its financial system. Concurrent sold treasury bonds and spending dollar reserves caused a correction in the dollar index that we see. Pay attention, I pointed with an arrow on the USD/Yen chart. When October 21, the Japanese held a record 37 billion interventions. Pay attention to the hairpin, and to the candle on the dollar, which caused a further pullback. At the same time, on the dollar index, such an intervention caused a strong red candle, led to a corrective movement, which ultimately we all see now. On the yen, liquidity is being compressed from above, while there is a volume gap on the weekly chart. Which needs to be filled.There are similar inefficiencies in the dollar. We think marked zones can be a reversal zone. And dollar rally again what continues downtrend of risc actives.