USD/CNH lift off lows is worth keeping an eye on

The week before last week the dollar versus the overseas Chinese Yuan (USDCNH) fell to a low at 7.1126. It was already trying to rebound when the USD/JPY crumbled last week. The slide in the USD/JPY had nothing to do with the Yuan though, as that was all about the markets panicking over the heightened prospect of a BOJ rate increase next week. Well, since that USD/CNH low, the dollar has been on the rebound and today it came very close to rising above 7.20 earlier on. The high seen was set at 7.1990. The USD/CNH closed on Friday at 7.1872. The low seen earlier today was set at 7.1799. The recovery from the November 28 low, at 7.1126 could extend further and without necessarily determining immediate price action elsewhere in the dollar, it is surely worth keeping a close eye on, because it can be an indicator for the dollar versus its other major counterparts. The USD/CNH is just now trading at 7.1920