US dollar falls against Japanese yen on ThursdayThe US dollar fell significantly during the trading session on Thursday, mainly in reaction to the ¥110 level being massive resistance, as we have seen more than once. We have pulled back from there to reach towards the ¥109.25 level. That is an area that was previous resistance, and we have bounced from that significant fall after the CPI figures missed in America.
The US dollar has pulled back rather significantly during the trading session on Thursday, reaching down towards the ¥109.25 level. This is an area that was resistance over the last several days, and now it’s offering support. That’s exactly what you expect, and when I look at this chart, I cannot help but notice that we could be forming some type of big “W pattern” which of course is a very bullish sign. I think that the ¥110 level is an area that will take several attempts to break above. If we can break above there, then the market goes looking towards the ¥112.50 level. Otherwise, every time we pull back it should be looked at as an opportunity to pick up momentum.
Ultimately, I think that we will find value hunters given enough time, because quite frankly I don’t think the Federal Reserve is going to change its plans. The first even mildly hawkish words out of a Federal Reserve member, this market turned right back around to slamming into the ¥110 level. I think it will take more than just one more attempt, but I think this is also the move and that will define what happens this summer. I believe that there is a significant amount of support down to at least the ¥107.50 level, so I look at this as a potential buying opportunity and will do so at the first signs of stability.