US Dollar Dumps Against Japanese Yen

The US dollar has struggled a bit against the Japanese yen during the trading session on Monday to slice through the 50 day EMA. This of course is a very negative turn of events, so be interesting to see whether or not we can continue to see this type of momentum. After all, we have made a “lower high”, so the question now is whether or not the Japanese yen continues to strengthen? If it does, this could show up against all JPY related pairs, and therefore it could be a bigger market signal.

USD/JPY Video 03.02.22

Having said all of that, we still have support underneath that should be paid close attention to, so the market is likely to see the ¥113.50 level underneath as support, and even more so below at the ¥112.50 level, as the 200 day EMA is starting to reach towards that area. If we were to break down below the ¥112.50 level, it would be an even more negative sign, and it could see the Japanese yen strengthening against almost everything. It would almost certainly be a bit of a negative signal for markets around the world so at that point in time things could get ugly.

On the other hand, if we can recapture the ¥115 level, that would be a very positive sign and it could have this market looking towards the highs again. We have a lot of work to do in order to make that happen, but it is a target to aim for. Currently, I would not put money to work in this market as it is so choppy.

For a look at all of today’s economic events, check out our economic calendar.