The US dollar has initially rallied during the trading session on Wednesday, but you can see that we give back some of the gains. It looks as if the ¥113 level has caused a bit of resistance, with the Core Durable Goods figures coming out later than anticipated in the United States. This of course had a bit of a risk off effect, and it makes sense that people jumped into the gang suddenly. Beyond that, liquidity was probably a bit of an issue as most American traders are focusing on Thanksgiving, and not the financial markets.
USD/JPY Video 22.11.18
Underneath current trading levels, I see a major uptrend line which is part of the up trending channel, as well as major support at the ¥112 level. Under their, we have the 200 day EMA which tends to attract a lot of attention. I think at this point we are in a very interesting level on the chart, as the most recent high was a bit lower than the previous one and it does look like the ¥114.50 level begins a massive resistance barrier that extends to at least the ¥115 level.
If we break down below the 200 day EMA, this market could unwind to the ¥110 level, perhaps even the ¥108 level. This would probably coincide with some type of selloff again in the equities markets, and a general “risk off” attitude around the world. At this point, the uptrend is still very much intact but it certainly is getting difficult.
