- Tuesday morning's early trade saw a small retreat in the US dollar since there is still a lot of support lying just below.
- Given this, we should consider the fact that we are still very much in an upward trend.
- While we could have a push lower, the likelihood of it being long-term is minor to say the least.
Tuesday Was More of the Same
During Tuesday's trading session, the US dollar made a small retreat against the Japanese yen as it appeared that we would test the 150 yen barrier, perhaps even 149.80. A move down to the 50-day EMA is therefore possible if it falls below that level. Of course, I believe that a lot of people will also be keeping an eye on the 50-day EMA. It's normal for this to draw a lot of attention, and since we've seen it function as dynamic support in the past, you should take careful note of it. It's
In all likelihood, we will continue to discover some kind of benefit that you can utilize in this circumstance. The US dollar will continue to have an advantage over the Japanese yen due to the interest rate gap. That being said, I believe you are in a scenario where you are merely looking for a value or a dip that you can take advantage of since the trend is quite strong. Furthermore, it doesn't look like it will alter anytime soon at this point in time. That does make some sense because the Bank of Japan is essentially powerless to do anything about the Japanese debt problem because they are indebted to such an extent that they are unable to pay off their debts - (even though they never will).
As a result, I believe that most currencies - not just the green bag - will continue to find it difficult to deal with the Japanese yen. Having said that, there will inevitably be a retreat, which is precisely what we are experiencing right now. The 152 yen level is up above, and it is, in my opinion, a pretty strong barrier. However, until we break above that level, you'll likely see an increase in buy and hold activity as well as more FOMO trading, which will drive this pair higher.
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