The US dollar has rallied again during the course of the trading session on Friday, as we continue this crazy parabolic move. That being said though, the market clearly cannot be shorted. At this point in time, the market is likely to see buyers on dips and I think that is what we need to see. The ¥113.50 level is your next support level, and at this point in time it is likely that we will continue to see buyers going forward, and now it looks like we are also perhaps going to be hitting ¥115 sooner rather than later.
USD/JPY Video 18.10.21
This is a completely Japanese yen move due to the fact that we see the Japanese yen falling in value against almost everything, not just the US dollar. That being said, I think that the market is likely to continue seeing upward pressure is, but as we have seen over the last month, this move has been drastic to say the least. Essentially, there will come a time where the momentum dries up, and therefore if we pull back, I think there will be plenty of buyers to pick this market up.
The ¥112.50 level is what I would consider to be a major floor the market right now, right along with the 50 day EMA reaching higher and going to go looking for that level. Breaking above the ¥115 level kicks off another “buy-and-hold” scenario but given enough time I do think we get there based upon what we have seen over the last several weeks. It may be difficult, and it may take some time, but eventually I do think that happens.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire