US dollar chops around against the Japanese yen on Thursday

The US dollar went back and forth during the trading session on Thursday, banging up against the 107.50 level, but finding support on these dips. I think that as you zoom out and look at the hourly chart, it becomes obvious that the market is trying to break out above this resistance barrier. If we can break above the 108 handle, then I think that the market should go to the 110 handle. That is an area that of course would be very interesting, and I think that the market breaking above there could bring in a fresh longer-term move to the upside. In the meantime, I suspect that we will get the occasional pullback that is thought of as value, as I think there is a massive floor in the market closer to the 105 handle. The 105-level underneath is not only a psychological support level, but it is also where an uptrend line coincides quite nicely. If we were to break down below there, the market probably drops down to the 100 handle, which is vital due to the psychological aspect of the number.

Longer-term, I believe that we are trying to form some type of base in this pair, and if that’s the case we could go much higher over the next several years, as it gives us an opportunity to build more of an investment and less of a quick trade. Ultimately, this is a market that should continue to be noisy and move upon headlines and corporate earnings as we are in the middle of the earnings season in America.

USD/JPY Video 20.04.18