The US dollar has rallied a bit during the course of the trading session on Friday as we continue to see a lot of choppy noise in this market. The ¥110 level has been a bit of a magnet for price and is nothing on this chart that suggests it is not going to continue to be so. The 50 day EMA sits just below the ¥110 level, so it is not a huge surprise to see that the market would go looking towards that area. If we can break above the ¥110 level, then the ¥110.75 level is also resistance, and then we have the ¥111.50 level. Keep in mind that once we get towards the highs again, we need to pay close attention to the longer-term charts, because we have so much in the way of resistance going back several months.
USD/JPY Video 02.08.21
The USD/JPY pair has a strong correlation to risk appetite, and therefore you should pay close attention to that as well. The NASDAQ 100 melted down late in the day on Thursday, and that caused a little bit of pressure over here. Nonetheless, I think given enough time we are simply going to grind back and forth as we try to figure out the next move longer term. Breaking down below the ¥109 level could open up further selling, but you should also keep in mind that the 200 day EMA is just under there as well, so it could also offer a little bit of psychological and structural support.
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