US dollar falls significantly against Japanese yen
The US dollar fell against the Japanese yen during the trading session on Wednesday, reaching down below the ¥110 level, an area that of course has been psychologically important in the past. This is very interesting to me, because the US dollar has been so strong against Japanese yen as of late, and I think part of this is due to headlines crossing the wire, or more specifically I should say conversations and quotes coming from politicians. There are concerns as to whether the trade war with China could in the end actually happen, but in the end I don’t think it does. I believe that this knee-jerk reaction could be a buying opportunity, but we need to close on the daily chart closer to the ¥110.50 level.
There’s also concerns that the conversation between North Korea and the United States might not happen, and that puts a little bit of negativity into the marketplace. That being said, I do think it’s only a matter of time before we rally again, and that we are still very much in and uptrend. I believe that the ¥109 level underneath as massive support, and I think it’s only a matter of time before the buyers come back in and pick up value. Given enough time, I think we get a nice buying opportunity. The question now is whether it will be above the ¥110.50 level, or if it will be closer to the ¥109 level? Until then, look for stability or one of those couple of levels to fire off a trade.
USD/JPY Video 24.05.18
This article was originally posted on FX Empire
