DX has cleared important resistance of 82 and continues sharply higher. Next resistance is the 83.64 to 84 area. Price is presently very overbought and if this is a valid breakout over 82 price must hold above this level. Coming this far so fast with such an overbought condition does suggest a selloff nearby. Meanwhile the run up is impressive and with the Yen selloff and other countries also looking to devalue their currencies to compete better with their exports there could be far more upside in DX than anyone could imagine. It's not a coincidence that ever since Japan's new leadership decided to do a 180 degree turn on its deflation policy and strong Yen to a weak Yen with a 2% 'inflation' target that the other currencies have all started to fall out of bed. They say in order to survive in an export driven world it's a race to the bottom. And DX could be the winner in the currency war without doing much of anything.
