The US dollar has rallied against the Japanese yen during the trading session on Tuesday, to reach towards the ¥108 level. That is an area that has been important more than once and quite frankly we are simply dancing around the same area yet again. A pullback from here could find buyers closer to the ¥106 level, where we have seen a bit of a “double bottom.” This is an area that I think will be rather stringent, and as a result I think we will continue to find buyers near that area. To the upside, the ¥110 level causes a significant amount of resistance, so if we do break to the upside that is about as far as I think this pair goes in the near term.
USD/JPY Video 01.07.20
I do believe at this point in time the market is going to continue to be very noisy as we have a lot of multiple headlines out there that could move the market in one direction or the other. Overall, this is a market that will continue to be very news driven, but more than anything else it will be very tight as we have well defined levels that continue to push this market back and forth.
When you look at the market, you can see from a longer-term standpoint that we are consolidating for a bigger move, but we are nowhere near that right now and of course once that happens it is likely that the market will move quite drastically. All things being equal, this is a lot of back and forth short-term trading just waiting to happen so keep an eye on the various levels.
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