Dollar Gets Smacked on Weak Economic Data

The two-day plunge in USD/YEN (Blue Chart) from above 120.00 to 117.50 has "repositioned" the CurrencyShares Euro ETF (FXE) pair beneath the level it was trading at of 118.00 last Friday morning, Jan 29, when the BOJ surprised the markets by voting 5-4 in favor of moving to negative interest rates on new deposits-- in a renewed effort to stimulate some inflation after 20 years of QE that has had less than stellar results.

That aside, current USD/YEN weakness once again has positioned it just above critical support at 116.40 - 116.00, which if violated and sustained, should trigger a press towards 110.00 - 107.00.

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