Traders should view any dips as potential buying opportunities and look for supportive-looking candlesticks on the daily chart to go long.
- The US dollar made an attempt to rally during Friday’s trading session but gave back gains as the Non-Farm Payroll announcement came out.
- The ¥137.50 level has been a significant point of resistance in the past, and it’s not surprising to see it acting as a barrier again.
- However, the market is influenced by several factors, and the US dollar has been stronger against the Japanese yen for the long-term due to rising interest rates in Japan.
The yen is a popular asset during turbulent times.
Last year, the market bounced from the 50% Fibonacci level, forming a “double bottom.” The pullback was based on the entire run higher from last year, making it an attractive opportunity for traders. Since then, there has been a strong upward trend, and the 50-Day EMA has broken above the 200-Day EMA, indicating a “golden cross.” The market is now fighting to be in an uptrend, and if it manages to break above the ¥138 level, it could quickly reach ¥140.
Traders should view any dips as potential buying opportunities and look for supportive-looking candlesticks on the daily chart to go long. I do not have any interest in shorting this market, as the Japanese yen is likely to have long-term structural problems. The Federal Reserve is looking more likely to increase rates further than previously thought, which could strengthen the US dollar even more.
It’s crucial for traders to use the right strategies in this market. Technical analysis tools such as moving averages, trend lines, and candlestick patterns can help identify potential entry and exit points. Traders should also keep an eye on economic events that could impact the value of the US dollar or the Japanese yen.
Risk management is also essential. Traders should set stop-loss orders to minimize potential losses in case the market turns against them. They should also avoid over-leveraging their trades, which could result in wiping out their accounts. After all, one of the last things you want to do is risk a lot of money in a market that is essentially all over the place.
The US dollar faced resistance at the ¥137.50 level during Friday’s trading session. However, the market is influenced by several factors, and the US dollar has been stronger against the Japanese yen for the long-term. Traders should view any dips as potential buying opportunities and use technical analysis tools and risk management strategies to navigate the market’s uncertainty.
Ready to trade our daily Forex analysis? We’ve made a list of the best Forex trading accounts to start trading with.