US Dollar Choppy Against Japanese Yen

The US dollar has gone back and forth against the Japanese yen during the trading session on Thursday as we continue to see a lot of noisy behavior in all markets. At this point in time, this market makes quite a bit of sense in the way it behaves due to the fact that risk appetite is all over the place. The 50 day EMA is sitting right here in the middle of this candlestick, which of course shows a bit of confusion. At this point, it looks as if the ¥114 level is offering a certain amount of support, and therefore it is worth paying attention to whether or not this hold. If it does not, then the ¥113.50 level could very well be where we go next.

USD/JPY Video 21.01.22

On the other hand, if we can break above the top of the candlestick, it is likely that the market could go looking towards the ¥115 level. The ¥115 level of course is an area where there should be a significant amount of resistance, but if we break above there then it opens up a move to the ¥116 level. Keep in mind that this pair is highly sensitive to the 10 year spread between bonds, so it does make a certain amount of sense that we would see this market pay close attention to what is going on in both of these bond markets. If bond yields start to rise again in the United States, that will certainly put upward pressure in this pair going forward. Obviously, the exact opposite is true as well.

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