The USD index has seen quite a decent recovery to the upside, but Coleman expects this will be capped by reverse trend line resistance at 98.65.

In addition to that, USDJPY has seen mixed results in the past 13 days with the intraday chart showing lower highs and this is forming a descending triangle formation with a bias to the downside, he says.

While there is scope for mild rallies, Coleman believes they will be limited. He is looking to sell at market and 113.82 with a stop at 114.10. His targets for the trade are 111.00 and 110.03.