The US dollar has rallied against the Japanese yen during the trading session on Wednesday, as we continue to see a lot of noisy behavior, and of course the of course this continues to be a scenario where we have a lot of choppy behavior, but keep in mind that the market is highly sensitive to the risk appetite of markets in general, so that is something worth keeping in the back of your head. Furthermore, the ¥110 level is a major round figure that will attract a lot of attention in and of itself.
USD/JPY Video 03.06.21
That being said, the 50 day EMA is racing towards the ¥109 level underneath so it should continue to come in and lift the market to the upside. The 50 day EMA has been nice support multiple times, and it does look very intriguing as a potential buying opportunity. Because of this, I like the idea of taking advantage of value as it occurs, meaning that I would continue to be a buyer of dips, but I am more than willing to look at other yen related markets as they have much more momentum behind them and are not reliant on the US dollar itself to show signs of strength which of course it has not done very well during the last several months. With this being the case, I think that although this pair is bullish, it is probably better thought of as an indicator for the Japanese yen in general.
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This article was originally posted on FX Empire
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