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US Dollar Gives Up Early Gains Against Japanese Yen

By:
Christopher Lewis
Published: Jan 28, 2022, 14:54 UTC

The US dollar initially rallied against the Japanese yen but as you can see, we have seen a bit of exhaustion come back into the market. Because of this I think that we are looking at a bit of profit-taking.

US Dollar Gives Up Early Gains Against Japanese Yen

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The US dollar has shown itself to be a bit exhausted during the trading session on Friday, giving back some of the gains from what has been a relatively parabolic move over the last couple of days. The market giving back some of these gains does make a certain amount of sense, but I do think that the ¥115 level will come into the picture and be important. After all, it is a large, round, psychologically significant figure and an area that has been important more than once in the past. With this, it will be interesting to see whether or not the buyers can keep the market up at that level, or if we slice through it.

USD/JPY Video 31.01.22

If we do slice through that area, I suspect that we have a real opportunity to see this market go looking towards the 50 day EMA underneath. The 50 day EMA of course is a technical indicator that a lot of people pay attention to, and therefore it does make a certain amount of sense that it could offer dynamic support. The 50 day EMA moving higher of course suggests that we do have an uptrend that we are in, and that we will ultimately continue to see buyers. In fact, I do not have a scenario where him willing to sell this pair anytime soon, but of course I will let you know here at FX Empire if things change. Ultimately, this should end up being a nice buying opportunity.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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