The US dollar has bounce around during the session on Tuesday, just as we had seen on Monday. The market seems to be attracted to ¥109, which has been support in the past. I think if we can break above the ¥109.40 level, the market will make another attempt to try to break the ¥110 level, an area that continues to be very important from both a psychological standpoint and of course the structural standpoint. If we can break above the ¥110 level, then the market is likely to go to the ¥110.50 level after that. I believe that short-term pullbacks will probably continue to be buying opportunities, as I also see support at the 180 in level, and of course the ¥107.50 level underneath.
It’s at the ¥107.50 level that I think we will see a hard “floor” in the market, and therefore it’s going to be difficult to break down through there. I believe that a lot of value hunters will be attracted to that area, and I see a massive amount of order flow underneath that level. It is because of this that I continue to look at this market as one that you can buy on dips, because it has so much support underneath. I believe it’s going to take a significant amount of momentum to break out, and because of this I expect to see several attempts before we are successful.
