Dollar was broadly lower last week on deteriorating recovery outlook in US as well as falling treasury yield. USD/JPY made new 2010 low below 86 level while EUR/USD also closed above 1.3 psychological level. However, there were a few developments to note. Firstly, EUR/USD lost much momentum after hitting 1.31

EUR/USD rose further to 1.3106 last week but faced strong resistance from mentioned cluster level of 1.3105/3123 (38.2% retracement of 1.5143 to 1.1875 at 1.3123, 161.8% projection of 1.1875 to 1.2466 from 1.2149 at 1.3105) and turned sideway. Initial bias remains neutral this week and we’ll continue to focus on

USD/JPY dropped to as low as 85.98 last week and the break of 86.26 confirms that whole decline from 94.97 has resumed. Short term outlook will remain bearish as long as 88.11 resistance holds and current fall should target 84.81 key support level next. Nevertheless, break of 88.11 will indicate