Advertisement
Advertisement

US Dollar Testing Top of the Recent Range

By:
Christopher Lewis
Published: Mar 3, 2022, 14:29 UTC

The US dollar has rallied a bit during the course of the session on Thursday to reach towards the ¥116 level. At this point, we are continuing the practice of trying to build an ascending triangle.

US Dollar Testing Top of the Recent Range

In this article:

The US dollar has rallied a bit during the course of the session on Thursday to reach the ¥116 area, looking likely to reach towards the recent double top that had been formed. We have been building an ascending triangle for a while and threatening to break out. Breaking above that level then opens up the possibility of a buy-and-hold situation.

USD/JPY Video 04.03.22

As things stand right now, I am more than willing to buy dips, especially as we get close to the 50 Day EMA. The markets will continue to be choppy and noisy of course but given enough time I do think that we will see follow-through based upon the interest rate differential. The market continues to see a lot of volatility, but that is going to be the same thing you see around the world in almost all markets.

If we were to break down below the 50 Day EMA, then the ¥113.50 level would be the next major support area. All things being equal, this is a market that I think continues to see a lot of value hunting, so I just do not have any real interest in trying to short this market. The choppy behavior does continue to favor looking at short-term charts for entries and exits, but I do like the idea of buying only, and just do not have any interest in trying to call the top here. After all, although the Japanese yen is considered to be a currency that people will run towards when they are looking for safety, but the same can be said about the US dollar.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement