US Dollar Continues to Attempt to Break Out

The US dollar has rallied initially during the trading session on Thursday to reach towards the double top that had formed previously. At this point, the market is not quite able to break above there, so it does make a certain amount of sense that we would see a pullback. Ultimately though, I do not necessarily think that this market will sell off drastically, and I do think that it is probably only a matter of time before we see this pair breakout and become more of a “buy-and-hold” situation.

USD/JPY Video 11.03.22

Keep in mind that the interest rate differential continues to favor the United States, and that is one of the bigger drivers of this market. Any pullback at this point in time will more than likely end up being a buying opportunity, with the 50 Day EMA hanging around the ¥115 level being a relatively obvious support region. I believe at this point in time we will see plenty of “buy on the dip” type of attitude out there, and I like the idea of picking up value in the US dollar anytime I get a chance.

Without a doubt, the US dollar is the leading currency to own right now, and I think that is going to continue to be the case as we head into the weekend, as well as the second quarter of the year. This is a market that has been knocking on the door of a major breakout for a while, and if you look at it from a longer-term standpoint, you can make a serious argument for an ascending triangle.

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