The US dollar has gone back and forth against the Japanese yen during the week, as we continue to hover around the ¥111 level. This is an area that has been important more than once, and quite frankly the market looks as if it’s trying to catch his breath after the initial breakout from a couple of weeks ago. I think that the ¥113 level above is resistance and a significant amount of supply. Overall, the market remains choppy, but that makes quite a bit of sense as there are a lot of concerns around the world.
Looking at this chart, it looks as if there is play support below, so I would be surprised if we broke down significantly, but I think anything is possible this point. I would expect a very choppy situation, and therefore it’s likely that we will continue to see a lot of short term back and forth range bound trading more than anything else. With the concerns about global trade and of course the tariffs around the world, I think this market is going to continue to be very tight, so therefore it’s going to be difficult for the longer-term trader to deal with. As a general, I would anticipate most traders will be looking to the short-term charts more than anything else. Expect volatility but keep an eye on impulsive candles as a hint on where to go next.