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Christopher Lewis
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USD/JPY

The US dollar has rallied again during the trading session on Friday to turn the trend back to the upside for the pair. Ultimately, this is a market that I think will continue to see influence coming in from the bond market in America, and of course the rates differential between the two currencies. With that being the case, I think it is only a matter of time before we see a return to the uptrend that has been so strong. We have bounced rather significantly during the day from an obvious support region, so this is a simple continuation of the overall attitude.

USD/JPY Video 12.04.21

The ¥110 level my cause a little bit of trouble, but at the end of the day I think it is nothing but a speedbump towards the highs again. Keep in mind that the interest rate differential is rather large, and that will probably continue to be an issue. With this being the case, I do think that we will reach the highs, and perhaps even breakout towards the ¥112 level. With that being the case, it certainly looks as if the uptrend is still very much intact, and there is no reason whatsoever to fight this type of move.

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We have had a nice correction, and now it looks like everybody who has missed the trade is wanting to get involved. I believe that the ¥109 level has shown itself to be the “floor the market” at the moment, and as I record this we are breaking through resistance over the last couple of days. Ultimately, the trend has changed.

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