US dollar chops around against the Japanese yenThe US dollar chop around against the Japanese yen during the day on Tuesday, dancing around the ¥109 level. The market looks likely to continue to dance around quite a bit, but I think that it’s a sign that the market is trying to build up enough momentum to finally take out the ¥110 level above which has been massive resistance.
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.
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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.