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Christopher Lewis
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USD/JPY

The US dollar has rallied a bit during the trading session on Tuesday, breaking above the 200 day EMA at one point. The question now is whether or not we can continue to go higher? If we do, then the next major barrier is going to be the ¥109 level, so at this point I think that the market is going to continue to be a bit sluggish above, and quite frankly unless you were here for the breakout itself, which occurred suddenly, you probably are going to have to pay attention to the ¥109 level for your next potential signal.

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Looking at this chart, I do believe that if we get a pullback there is probably going to be plenty of support at the 50 day EMA. Ultimately, I think we will continue to go back and forth and chop around in this general vicinity. This move happened in about 15 minutes on extraordinarily little in the way of noise, so I think it was simply a stop run.

USD/JPY Video 03.06.20

You cannot really trade that, unless of course you are there in the moment, so at this point I would take a look at exhaustion at 109 as your next potential set up. The unbelievable amount of FOMO that we have seen out there may be another reason the Japanese yen suddenly weekend. Ultimately, this is a market that continues to be choppy and I do believe that eventually we go back to the safety trade, which is lower, but again we need to see the ¥109 level offer that signal.

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

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