US Dollar vs Japanese Yen Technical Analysis
The US dollar has fallen on Thursday, as we continue to see the market dance around the ¥133 level. That being said, the market is likely to continue seeing the light of consolidation in this general vicinity, with the 50-Day EMA guarding the ¥138 level, which is an area that we previously had seen both support and resistance at, offering a bit of “market memory.” Breaking above there would be very difficult to do, but it would obviously be a very bullish sign.
On the other hand, the ¥130.67 level underneath has offered a bit of support, so if we were to break down below there then I think this trade starts to unwind completely. A lot of this is going to come down to what’s going on in the bond market, as the Bank of Japan has allowed the 10 year note in that country to produce as much as 50 basis points in return.
Between now and the end of the holidays, I don’t necessarily…
