US dollar rallies during the session on Monday

The US dollar has rallied a bit during the trading session on Monday, slicing through the ¥111 level. The market reaches high as the ¥111.40 level, and then pulled back a bit. I think that the ¥111 level should offer a bit of support, just as the gap from the open of the week will be. We are obviously in a very bullish attitude, and I think that will continue to be the case, especially if US interest rates rise in the 10-year note.

The Bank of Japan continues its very loose monetary policy and shows no signs of changing that attitude anytime soon. Because of this, the market is likely to continue this upward proclivity, and I look at these pullbacks as an opportunity to pick up a little bit of value in one of the strongest currencies in the world, the greenback. I have no interest in shorting this market, and even if we did break down below the gap, I think there is a significant amount of support at the ¥110 level as well.

Another thing that could help this market is if the stock markets continue to rally, because this is a bit of a wrist sensitive pair of times as well. I do like the idea of picking up value as it shows itself, and I think it’s showing itself as we pull back later in the American session on Monday.

USD/JPY Video 22.05.18