The US dollar has gone back and forth during the week against the Japanese yen, as we continue to react to the headlines coming from both the United States and China. This is a market that is a bit of a proxy for most of Asia, so it makes sense that it would be one of the more noisier currency pairs that we are dealing with right now. It looks as if the ¥110 level continues to offer a bit of a magnet for price, with ¥111 just above offering resistance, and ¥109 offering support. I think we will continue to go sideways more than anything else, but if we can break above or below this little bit of a consolidation range, I think then you can put money to work and trying to play for a larger move.
On a break out to the upside, the initial target would be 112.50 again, and then eventually ¥115. On a break down below the ¥109 level, the market will probably go looking towards ¥107.50 level where I see quite a bit of support. Unfortunately, it seems to be a bit of a wild guess as to where we go next, because fundamentals are not driving this marketplace. At this point, I think longer-term traders are probably stepping to the side.