The US dollar has rallied a bit during the course of the trading session on Wednesday to reach towards the ¥110 level yet again. The 50 day EMA is sitting right here as well, so it makes a certain amount of sense that we are hovering in this area. Because of this, I believe that the market is going to continue to chop around, and I think that if you are looking for some type of definitive move, you probably will not get it after the announcement. I think we are going to continue to hang about this area, perhaps in a manner best described as “listless.”
USD/JPY Video 29.07.21
Keep in mind that it is also the dead of summer and therefore we probably have some quiet days ahead of us, and you should also keep in mind that the ¥111 level above is the beginning of significant resistance that extends all the way to the ¥112 level based upon the longer-term chart. Because of this, I think it is going to continue to be difficult to take off to the upside, and therefore I think you have to keep in mind that there might be a little bit of a chance that we break down.
If we break down, I believe that we could go looking towards the 200 day EMA. After that, I think that the market could go to the ¥107.50 level. All things been equal, I am using this chart more or less as a secondary indicator as to what we should be doing with the Japanese yen overall. All things been equal, yen peers do tend to move in the same general direction.
For a look at all of today’s economic events, check out our economic calendar.