US Dollar Reaches Resistance But Pulls Back
The US Dollar rallied in Tuesday’s trading session to hit the ¥115 level before pulling back a bit to form a bit of a shooting star. That being said, I think this market will likely continue to rally longer term, but pay close attention to whether or not the market is moving on interest rates in America, or perhaps a trade based on the fear. That being said, it is interesting to see that the market has quickly regained its momentum and the Japanese Yen is starting to strengthen against several currencies. For that reason it suggests that we more or less think this is a fear based trade more than anything else so once things calm down a bit I believe we will be half way -tower.
USD/JPY Video 19.01.22
With that in mind, I prefer this as a “buy on dips” situation. Ultimately, this is a market that I think will eventually try to hit the highs again, but I’m not necessarily sold on the idea of jumping “all in” just yet. Full disclosure: I have already closed my long position on this pair and will more than likely be looking to find some type of downside in order to take advantage of any type of value. I think there is a lot of support extending to the lows from Friday’s session last week. With that in mind, I’m just looking for short-term charts to take advantage of any kind of value that occurs.