US Dollar Testing Top of the Range

The US dollar has rallied a bit during the trading session on Tuesday to reach the top of the short-term range, and it looks as if the market continues to see a lot of volatility, which makes quite a bit of sense considering that both are considered to be safety currencies, and therefore it is likely that we would see a lot of back and forth.

USD/JPY Video 09.03.22

The ¥115 level underneath continues to be massive support, but it is not necessarily a “hard floor in the market.” Underneath there, then the market could go looking towards the ¥114.50 level, where we have seen a lot of buying as well. Regardless, this is a market that is bullish, and I do not think it is going to change its tune anytime soon.

The market has been in an uptrend for quite some time, and if we can break above the ¥116.33 level on a daily close, I believe at that point in time it would become a “buy-and-hold” type of situation. Ultimately, this is a market that also has to pay close attention to the interest rate differential, which of course favors the United States well over the Japanese yen. As long as that is going to be the case, I think that we go higher and that each dip will more than likely end up being a buying opportunity based upon value if no other reason. I do like buying dips, but I do not necessarily want to buy this market at the top.

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