Investors and traders should closely monitor these levels and events to make informed trading decisions.
The yen is a popular asset during turbulent times.
On Monday’s trading session, the US dollar traded back and forth against the Japanese yen. The market is currently looking at the ¥135 level as a potential resistance barrier. However, the market is also sitting just above the crucial 200-Day EMA, and it remains to be seen if it can offer support. The 50-Day EMA is also trying to curl back to the upside, so we can anticipate quite a bit of noisy behavior. The market has been rejected at the ¥135 level, but if it manages to break above it, it has a clear shot to the ¥137.50 level.
If the market breaks above the ¥137.50 level, then it can continue to go much higher. However, we can expect a lot of volatility in the next few days as the Bank of Japan continues to fight higher interest rates. This means that they will be printing more Japanese yen, which can drive down the value of that currency. On the other hand, the Federal Reserve is keeping a very tight monetary policy, which can offer a bit of support to the US dollar, despite the fact that it may not necessarily be their intention. As long as there is a significant amount of inflation in the United States, that will be a continuous issue.
Buy on the Dips Type of Market
- It’s worth noting that the market had recently bounced from the 50% Fibonacci retracement level, which is something that many technical traders will pay close attention to.
- The ¥127.50 level is where that 50% Fibonacci level showed up, and it’s also an area that previously had seen support.
- With all that, it’s very possible that this may remain a “buy on the dips” type of market.
In summary, the US dollar is trading against the Japanese yen with a potential resistance barrier at the ¥135 level. The market is currently sitting above the crucial 200-Day EMA, and it remains to be seen if it can offer support. The Bank of Japan is fighting higher interest rates, while the Federal Reserve is keeping a tight monetary policy. The market had recently bounced from the 50% Fibonacci retracement level, which is a level that many technical traders will be watching. With all that, it’s very possible that this may remain a “buy on the dips” type of market. Investors and traders should closely monitor these levels and events to make informed trading decisions.
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