The US dollar initially fell against the Japanese yen during the course of the week but found support just above the ¥109 level. This is an area that has been resistance previously, and therefore I think it will be interesting to see if we get through. If we do, then the ¥111.50 level could offer quite a bit of resistance. If we break above there, then the market goes looking towards the ¥112.50 level. Furthermore, when you look at this chart, you can see that we have been in a range for a while, with the ¥110 level being a bit of a magnet for price. All things been equal, this is a market that I think continues to see a lot of choppiness, but you should keep in mind that this market is highly risk sensitive.
USD/JPY Video 27.09.21
If we break down from here, then the market is likely to test the ¥109 level yet again, and if we break down below there, the market is likely to fall even further. With that being said, the market tends to favor the Japanese yen when there is a lot of concern out there. That being the case, pay close attention to this market. That being said, the market is also forming an ascending triangle, so we need to make some type of decision sooner or later.
The move has been rather strong, but at this point now we are really starting to press the issue when it comes to the technicals when it comes to the market, and therefore we need to see some type of clarity but it certainly looks as if it is starting to favor the upside.
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This article was originally posted on FX Empire