The US dollar has rallied a bit during the course of the trading session on Wednesday as we continue to see the market try to press higher. The ¥111 level is an area that has caused issues more than once. That being said, if we were to break above the ¥111 level, then we could go looking towards the ¥112 level. Nonetheless, it would be very difficult to get above there.
After all, the market would continue to see a lot of noise in this area, so I think that we are definitely looking at an area that could be trouble. Regardless, I use this pair more or less as a signal as to what we do with the Japanese yen against other pairs due to the fact that this pair tends to be very choppy and noisy, but other pairs such as the GBP/JPY pair or even the AUD/JPY pair give us more room to move.
USD/JPY Video 24.06.21
If we do pull back, I anticipate that this could make a bit of a “double top”, which of course would have ramifications in and of itself. For what it is worth, the MACD is showing a bit of divergence, which could be a signal in and of itself that this pair is ready to fall. Whether or not is a major “risk off” type of situation or if it is just simply the US dollar falling is a question that is on the minds of traders, and this could give us a glimpse into what is actually getting ready to happen. Ultimately, this is a pair worth watching but may not be a pair worth trading.
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