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Dollar index (USDX) lifts modestly in Asian trading

On Friday afternoon, the better than expected US jobs report helped the dollar to charge higher. As noted, the USD/JPY briefly spiked above 145.07 and the EUR/USD slumped to a new interim low at 1.0724. Those moves, coupled with a slide close to 1.25 in the GBP/USD, saw the USD index (USDX) reach a new rebound high at 104.26. Of course had the USD/JPY not fallen back as much as it did last week, notwithstanding the rebound on Friday, then the index would have fared better. Nevertheless, it still just managed to set a weekly close above that 104 handle (at 104.01). Perhaps another reason why the index stalled 3 times now above 104.20 is due to a technical level. Look, if I could show you a picture of the chart here then I would, but these updates are narrative only. So, if we take the high of the year, at 107.348 and then the most recent low at 102.467 and plot a 38.2% recovery of that fall, it arrives at a resistance level of 104.332. Perhaps now you can see why the index has stalled just short of that level 3 times since November 22. Overnight the index has rebounded from an earlier slight dip to 103.93. It is near session highs just now (104.09) and that is mostly due to the rebound in the USD/JPY so far today and that 104.33 level remains a key level to be aware of should the index rise further from here today

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