US Dollar Sinks Against Safe Haven Yen
The US dollar has fallen during the course of the trading session on Friday as we continue to see plenty of risk off behavior out there. Because of this, it is difficult to get overly excited about going long of this pair, as the Japanese yen is starting to flex its muscles in a bid to cover risk appetite. While the US dollar is a way to get away from risk, the reality is that the Japanese yen will continue to be much more attractive. All of that being said, we have plenty of technical levels to pay close attention to.
USD/JPY Video 24.01.22
The first thing as far as technical analysis is concerned is that we have the 50 day EMA sitting above at the 114.30 again level, which could offer a little bit of resistance. That being said, somewhere near the ¥113.35 level there will be a certain amount of support based upon the hammer from last week. We had seen buyers come back in there, and then rallied all the way towards the ¥115 level before falling. While we are still very much in an uptrend from a longer-term standpoint, it is obvious that we are continuing to see a lot of negativity around the world, and if that is going to continue to be the case it is very likely that we will continue to see this market struggle a bit.
Essentially, this is a market that is looking to outside pressure as to where it wants to go next. That being said, the market will continue to be choppy, so you will have to look outside of it for signs of stability before you start looking to go long.
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