Yen’s Range Trading Opportunities

The Yen has gotten slightly stronger this morning against the U.S Dollar, but it clearly remains within the weaker realms of its range. The Yen has not been able to break its weaker resistance, but speculators may be willing to look for weaker values as a range trading opportunity.

Weaker Range Holds Firm for Yen

The Yen continues to battle within its weaker range against the U.S Dollar but has traversed below the 114.00 level in early trading this morning.

The Nikkei Index has turned slightly cautious this morning, which may have led to some selling of the U.S Dollar against the Japanese currency. But it could also be the happenstance of a well-practiced range.

Speculating on Weaker Values to Come

A look at a mid-term chart shows the Yen has gotten weaker since early September as a buying frenzy has erupted in Japanese equities.

However, the Yen has had a tough time breaking through resistance which is around the 114.40 level, but traders may continue to be tempted to buy the U.S Dollar against the Yen to take advantage of its range and speculate on even weaker values for the Japanese currency.

Nikkei Index the Key

When looking at the Yen long term it is rather easy to see the pivot points which have occurred after the Japanese currency has reached important resistance around the 114.40 level, it has effectively reversed downwards and gotten stronger.

While the Yen remains within its weaker stance against the U.S Dollar as the Nikkei Index soars, the question which needs to be asked – are things different this time around?

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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