Christopher Lewis
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The US dollar has drifted lower during the trading session on Wednesday to reach towards the ¥109 level. That is an area that has been supportive recently, so it is not a huge surprise to see that we have bounced from there ever so slightly. That being the case, the market looks as if it is paying close attention to that 200 day EMA underneath as well, so with that being the case I think we are setting up for something bigger if we do break down. In fact, if we break down below that level it is we go to the ¥107.50 level.

USD/JPY Video 16.09.21

On the other hand, if we were to turn around and rally again, the market is likely to see the ¥110 level as a major anchor for price in general. The 50 day EMA sits right there as well and has been going sideways. So, in other words, this is a market that has been very sideways for a while, but the question now is whether or not we are going to see a sudden shift finally? This is a market that would have put you to sleep for several months, and one would think that sooner or later we have to make a big move.

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In general, this is a market that I think will give us an idea as to what the rest of the markets will do, due to the fact that it is so highly sensitive to the risk appetite of traders in general. That being said, it is worth noting that we are turning around mid-day to reach towards that consolidation yet again.

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

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