US dollar rallied against Japanese yen during the week
The US dollar rallied against the Japanese yen during the week as interest rates continue to climb, course putting pressure on the greenback to the upside. I think that the 110 level above is resistance, but I think that the attitude of this market will eventually have the buyers overtaking that area. I recognize that the 107.50 level is supported underneath, so I anticipate that pullbacks are opportunities. The uptrend line underneath should continue to support the market as well, so I believe that longer-term traders are starting to look at this as a market that offers value. If we were to break down below the uptrend line, then I think the market would test the 105 level which it was major support, but at that point I think we would be talking about parity. That’s a very unlikely at this point though, although I see a world of hurt just above that is going to be difficult to overcome.
The 115 level above is a target as well, but that is going to take a lot of work to get to. I think that the 115 level above is extraordinarily important, and a break above there would probably send this market into a multi-year uptrend. I like the idea of buying pullbacks and continuing to build a position longer term as an investment, which is probably the best way to look at this market longer term.