Otmane - USD/JPY Threatens 101.50 Support- Bearish RSI Break Favors Downside

Otmane El Rhazi via Daily FX.

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar ) looks poised to give back the advance from October (10,354) as it continues to carve a series of lower highs & lower lows in May.

Indeed, the reserve currency looks to have marked the high for the month as it continues to respect the descending channel from earlier this year, and the bearish sentiment surrounding the reserve currency should gather pace going into the second-half of 2014 as long as the Federal Reserve remains reluctant to move away from its easing cycle.

With Fed Chair Janet Yellen scheduled to speak later this week, more dovish remarks from the central bank head is likely to produce a further decline in the greenback, and we will continue to look for opportunities to ‘sell bounces’ in the dollar as the bar remains high to see a material shift in the Fed’s policy outlook.