Yen Waiting for Next Big Move

The Yen has been weaker most of the week against the U.S Dollar, but if Asian equities remain nervous and the U.S inflation number is weak today, the Yen may start to strengthen.

Yen’s Consolidated Range Can Break

The Yen has traded in a consolidated range the past two days after becoming weaker against the U.S Dollar. The Yen is near 110.35 against the U.S Dollar and needs to be watched.

Japanese equities added plenty of value early this week, but have become cautious the past two days. The Yen, however, has not weakened significantly.

Dynamic Trading Likely for Yen

The Yen has the potential to become volatile the end of this week if Asian equities continue to trade in a nervous fashion.

The 110.00 level for the Yen looks to be interesting support. If the Yen gets stronger and breaks through the support it could aim for the 109.50 juncture quickly.

Yen at Important Juncture

A combination of nervous equity markets in Japan and important inflation numbers coming from the U.S today could produce fireworks for the Yen.

If the Core Consumer Price numbers in the States today come in below their expectations, the U.S Dollar may be sold for the Yen – making the Japanese currency stronger.

In the short term, we believe the Yen may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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