The US dollar continues to grind a bit higher during the trading session on Thursday, as the Japanese yen continues to soften. However, we are in a very tight consolidation range overall, so I’m not looking for much out of this market between now and the end of the year.
The US dollar has went a bit higher during the trading session on Thursday, as we continue to grind towards the ¥114 level. This is an area that has been crucial more than once, as we continue to see a lot of resistance just above. I think that the resistance extends all the way to the ¥115 level, so keep in mind that it’s going to take a while to get through there. That’s assuming of course that we even can but it does look like that’s the trajectory overall that the market is trying to follow.
Ultimately, there is a massive amount of support underneath though, as the uptrend line clearly denotes on the chart, as well as the ¥112 level and the 200 day EMA. It’s because of this that I think we are simply going to squeeze sideways overall between now and the end of the year, but I do prefer to buy dips more than selling rallies. This is only because recently we have seen such a strong up trending channel. Looking at this chart, I think it will be difficult to break down for any significant amount of time, but I do believe that we will get a lot of volatility based upon headlines and of course trade fears. In general, I think that the major move that seems to be likely to happen in this pair, one direction or the other, it’s probably a story for January.
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.