Weekly Chart USD Index DXY: Pushing higher in JPY-driven trade

Consolidation above strong support at the 98.60 Fibonacci retracement and congestion around 99.00 has given way to a steady JPY-driven bounce, with the break above 100.00 currently balanced around 100.40.

Flat overbought daily stochastics are ticking higher once again and the daily Tension Indicator continues to rise, highlighting room for still further gains into the coming week.

Resistance is at congestion around 100.50 and the 100.60 Fibonacci retracement. A close above here will improve sentiment and extend late-August gains towards stronger resistance at further congestion around 101.00 and the 101.05 retracement. However, already overbought daily stochastics could limit any initial tests in profit-taking. A further break, if seen, will put prices into fresh range extension beneath 101.50.

Meanwhile, support is raised to congestion around 100.00.

Weekly stochastics are turning higher, unwinding oversold areas, and the bearish weekly Tension Indicator is flattening, suggesting an improvement in sentiment and limited downside tests. Any immediate pullback should give way to consolidation around here. However, a break, if seen, will turn price action neutral once again and put prices into range extension above the 98.60 Fibonacci retracement. A further close beneath here, if seen, would add weight to sentiment and extend losses from the 101.80 current year high of 24 June towards strong support at the 97.95 longer-term Fibonacci retracement and congestion around 98.00.