US Dollar Continues to Hover Above ¥115

The US dollar has seen itself go back and forth during the trading session on Wednesday as we continue to see a lot of noisy behavior. That being said, the market is very likely to continue to see the market as one that will continue to look towards higher levels, but it is obvious that we need to test this ¥115 region. In the moment, it looks as if a short-term pullback is more likely than not, but that short-term pullback should be thought of as a potential buying opportunity. It will be interesting to see how this plays out, because the US dollar is weakening against a lot of its major counterparts, but at the end of the day the Japanese yen is without a doubt the weakest G 10 currency.

USD/JPY Video 13.01.22

The 50 day EMA currently sits just above the ¥114 level and is racing towards the upside. I think that the 50 day EMA could very well end up being a bit of a dynamic floor in the market, so therefore I think that is probably where your bottom is. Having said that, you should also pay close attention to the ¥115 level as it had previously been resistance and now should offer significant support. Ultimately, I think this is a market that continues to go higher over the longer term but has a little bit of work to do in the short term.

If we do give up the ¥114 handle, then I think at that point in time you probably have a lot of concerns when it comes to the market, and we could drop towards the ¥112.50 level.

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