US dollar breaks out against yen on Wednesday

The US dollar has broken out during the trading session on Wednesday, clearing the psychologically important ¥110 level. I think that the market will continue to be very noisy, and the conversation between America and North Korea could have a major influence on what this pair goes as the Japanese yen is a bit of a proxy for Asian risk. If things go well, I think that will continue to boost this pair, just as global risk appetite will. If we can continue to see the stock markets rally a bit, this market should continue to go much higher. I think that it’s only a matter of time before some type of geopolitical event pushes this market either higher or lower, so keep an eye on the headlines as a cross the wires.

I believe that the ¥109.50 level underneath will be important as well, and I think the bottom of the support that we are currently testing. Stock markets are a great indicator, future markets futures markets can also have a bit of an influence as well, but I think that the ¥112.50 level above will be a juicy target, perhaps even the ¥114 level. If we did break down below the 109.50 young level, then I think the market probably unwinds down to the ¥109 level. This market will continue to be noisy, as we are worried about a trade wars and the like. However, things are starting to calm down a bit so that should help the buyers.

USD/JPY Video 07.06.18