US dollar pulls back slightly against Japanese yen on Tuesday

The US dollar has pulled back slightly during the trading session on Tuesday, as the ¥110 level has offered significant resistance. It’s a psychologically important number obviously, but on the daily chart we have the 200 day simple moving average right around that level as well, which of course attract a lot of attention. I do think that eventually we go higher though, especially if the interest rates climb in the United States. But remember that this pair also has a lot of sensitivity to the stock markets as well, so if the S&P 500 rallies, it’s likely that we will see this pair rally as well.

I think that the ¥109.50 level offers a certain amount of support as well, as well as the ¥109 level. Overall, I believe that the market will continue to be very noisy, but overall I believe that the uptrend should continue. I think that we are trying to change the longer-term trend, which is almost always a very noisy event in the pair as it tends to be volatile in general. I think that the market continues to see a lot of volatility based upon the geopolitical events as well, especially when it comes down to the situation of conversations between the United States and North Korea. In general, I believe that if those conversations are fruitful, that should send this market much higher. I believe that if the talk of geopolitical trade wars could cause major issues in this pair but right now it seems as if the cooler heads are starting to prevail.

USD/JPY Video 06.06.18