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Christopher Lewis
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The US dollar has gone back and forth during the course of the trading session on Friday as we are looking for some type of support to finally break out to the upside again. The ¥109 level being broken on a daily close would be my signal to start going long, as we have had a nice pullback to a major support level in order to perhaps try to go to the upside again. We have been in a major uptrend, and therefore it makes a certain amount of sense that we would get this pullback as we had been a bit overdone.

USD/JPY Video 19.04.21

All things been equal, I would anticipate a lot of support between here and the ¥108 level, especially now that the 50 day EMA is sitting in that area. The market has continued to see a lot of bullish pressure over the longer term, but the last couple of weeks have been brutal. The last couple of weeks have been a nice pullback though, and now that we are sitting in the midst of what previously could have been thought of as a bullish flag or a pennant, then I think we probably have the ability to find some buying pressure in this area.

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Breaking down below the 50 day EMA at the ¥108 level could lead to something rather significant though, and then at this point in time it is likely going to reach towards the 200 day EMA underneath. Ultimately, I do think that we go higher but we need a little bit of stability over the course of a couple of days to get long again.

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

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