US Dollar vs Japanese Yen Technical Analysis
The US dollar is continuing to show strength against the Japanese Yen, as the market has been like a wrecking ball against it. The market should continue to see plenty of buyers on dips, as it gives us an opportunity to pick up “cheap US dollars” in relation to the Japanese yen as the Bank of Japan continues to fight interest rates. The quantitative easing coming out of Tokyo will continue to put downward pressure on the Japanese yen overall, and I do believe that it is probably only a matter of time before we see the US dollar breakout to a fresh high near the ¥140 level.
On pullbacks, I believe that the 50 day EMA has to be paid close attention to, which is sitting right around the ¥135 level. I believe that is your short-term floor in the market, but even if we break down below there, then it’s likely that we would see an attempt to break down through the ¥132.50 level, which…