Yen Signals More Pain Ahead for Dollar Bulls
- Japanese currency has almost halved post-election losses
- Technical indicators point to further declines for pair
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The yen is proving a canary in the coal mine for traders gauging the health of the Trump reflation trade. The latest vital signs suggest dollar bulls better keep bailing.
Since the beginning of the year, the yen has nearly halved its post-election losses and has broken several major resistance levels. This is a signal the currency has momentum. If the dollar drops another leg -- a trading term for a short-term trend -- it could be a sign that the Trump-inspired rally is over.