The US dollar has rallied a bit during the trading session only to give all of those gains back up on Wednesday as we simply have nowhere to be. This market has dance around the 107.50 level quite often, and it looks like we are going back into another one of those times where the market has nowhere to be. With the lack of news, it is very unlikely we get a big move unless it is a bit of a “knock on effect” from other markets.
USD/JPY Video 18.06.20
At this point, I continue to use this pair as an indicator for other Japanese yen related pairs. In other words, if it starts to drift lower than I might look to short another pair such as the AUD/JPY pair, CAD/JPY pair, and so on. Ultimately, I believe that this market will try to find its way forward, but it is not until we get an impulsive candlestick on a daily chart that I think it is worth bothering with.
The 200 day EMA and the 50 day EMA are sitting just above offering resistance but they are going sideways so I do not know that we are quite ready to break out to the upside but having said that the downside has been incredibly supportive as well. With that in mind, I think the market just chop back and forth and therefore unless you are a short-term back-and-forth type of trader, it is probably exceedingly difficult to put any money to work here.
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