US dollar rallies against Japanese yen during the Wednesday session

The US dollar has rallied against the Japanese yen over the last several sessions, as we have seen interest rate markets show higher rates coming out of America. That sends the greenback higher of course, and I think we are now starting to look towards the top of the overall consolidation area, which is the 110 level. In the short term, I believe that the 108.50 level underneath is supportive, at least initially. If we were to break down below there, the market probably goes down to the 107.50 level. That’s an area that the market would be very supportive of, as we gapped higher at the beginning of the week. I believe that every time we pull back, people will be looking to pick up the greenback.

If we were to break down below the 107.50 level, the market could go lower, perhaps reaching towards the 107 handle. I believe that the 110 level will take several attempts to break above, so I would anticipate a lot of volatility above, every time we pull back though, I think that there will be more than enough reason to go long. Once we break above the 110 handle, then the market will probably target the 112 handle, perhaps even the 115 handle over the longer term. I believe that we are in the midst of a massive trend change, so this pair tends to be very noisy during these moves, which is exactly what we have seen over the last several months.

USD/JPY Video 26.04.18