The US dollar has pulled back a bit during the course of the trading session on Monday, as we are looking to reach towards the ¥110 level. At this point in time, the market is likely to continue to see a lot of interest in this area, especially sitting just above the 50 day EMA. The 50 day EMA attract a lot of attention, and then if we break down below there it is likely that we could go down towards the ¥109 level.
USD/JPY Video 10.08.21
In general, this is a market that I think is starting to run into a bit of trouble, as we are starting to make “lower highs”, as the market structure is starting to break down a bit. All things being equal, this is a market that continues to see a lot of noisy trading to say the least, and of course you should be paying close attention to the fact that it is very sensitive to risk appetite. Keep in mind that the Japanese yen of course is considered to be a major safety currency, so therefore if we continue to struggle with the idea of global growth, it does make sense that we go lower, even though the United States dollar is considered to be in high demand, it will be as driven as the flows into the Japanese currency.
To the upside, there is a significant amount of resistance between the ¥111 level and the ¥112 level. In fact, it goes back several months and years, so at this point in time it is really a difficult proposition to break above there, so if we did clear the ¥112 level, which could open up a huge “buy-and-hold” type of situation.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Silver Price Daily Forecast – Silver Attempts To Recover After Huge Sell-Off
Big Money Index Falls To 18-Month Lowv
USD/CAD Daily Forecast – Canadian Dollar Remains Under Pressure At The Start Of The Week
Monster Beverage Stock Attracts Big Money
GBP/USD Price Forecast – British Pound Continues to Test Support Underneath
E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 34870 to Sustain Momentum