It should be noted that breaking below the ¥132.50 level is necessary to consider shorting the pair.
- During Thursday’s trading session, the USD/JPY experienced a slight rally and is approaching the ¥137.50 level, a crucial area that has served as both resistance and support in the past.
- It is no surprise that the market is attracted to this level.
- The 50-Day EMA is positioned well below the market, but it appears that it may soon cross the 200-Day EMA, triggering the “golden cross indicator” that long-term traders closely watch.
The yen is a popular asset during turbulent times.
In case of any pullbacks, the market should continue to find support around the ¥135 level and the 200-Day EMA. Therefore, any pullback at this stage is likely to be brief and regarded as a potential buying opportunity. The trend appears to be on the rise once more, and it is worth noting that there was a double bottom formed at the 50% Fibonacci level from the previous upward move. That is an area that should not be overlooked, and the fact that we managed to defend it is something that can mean a lot.
However, breaking higher may not be straightforward, and the market may display some noisy behavior. Nevertheless, Friday’s candlestick had a significant upward spike, and the market has yet to break below its low point. As a result, many people are interested in getting involved, and this indicates that the market is likely to present a “buy on the dip” type of opportunity. Moreover, there are several reasons to believe that the Japanese yen will continue to be weakened, so the market is expected to experience a rise over the long term.
It should be noted that breaking below the ¥132.50 level is necessary to consider shorting the pair. Ultimately, the market is expected to increase substantially over time, but it may not be easy to attain higher prices. That being said, it would be nothing out of the ordinary considering just how choppy and noisy the markets have been over the last several months. Clean moves are almost unheard of anymore, so keep that in mind and keep your position size reasonable as it is going to be the only thing that can save you in an uncertain environment. As the market continues to argue with itself, your job is going to be to protect your account as it throws its tantrums.
