US Dollar vs Japanese Yen Technical Analysis
The US dollar is up again in the early hours on Tuesday as we continue to see traders really punishing the Japanese yen for a lack of interest rates and swaps from Japan. After all, you’re getting paid to hold this pair. And I just don’t see how that will change anytime soon. If that’s the case, I think there’s a situation where anytime the price falls, it makes some sense that we’ll continue to see buyers step in and take advantage of cheap US dollars.
This is an investment, not just a transaction. So I think at this point longer term traders have been holding on to this for quite some time. Below that we have the 155 yen level which I think offers significant support. We also have the 50 day EMA there. And I think that comes into focus as well. So pay close attention.
The 160 yen level above remains an important factor. And if we can break above that, I think the market will probably continue to rise, perhaps for more of a buy and hold scenario longer term. As things stand right now, I’m more than willing to simply buy dips and take advantage of the value that presents itself. If we were to somehow get below the 155 yen level, the next major support level is at 152 yen. I just don’t see that happening, but it’s something to keep in mind.
Check out our economic calendar for an overview of all today’s economic events.
This article was originally posted on FX Empire
