- Since Friday seems to be another flat day, the US dollar and the Japanese yen have been trading relatively sideways throughout the early hours of the day.
- In the long run, I believe there will be significant upward pressure on this market, but for now, we need to maintain our current pace.
US Dollar Continues to Show Life Overall
When looking at the US dollar in relation to the Japanese yen, it is evident that the market attempted to rise early on Friday but ultimately fell back. However, consolidation appears to be the only thing that can be inferred from the chart.
A number of individuals had previously been keeping an eye on the 149.80 yen level. Thus, I do believe that a particular area has a certain level of market memory. I would keep an eye on the 148.50 level, the 50-day EMA, and the 147.33 level if we were to break below that level as they might all provide support.
The interest rate differential is the reason we are currently in an uptrend, and it will continue to pay you via swap at the end of each day. Longer-term traders are merely holding onto a profitable position—that is, they are engaging in what longer-term traders do. We have the 152 yen level above. If we can get through there, I believe there will be some opposition in this area.
That might lead the market to reach the 155 yen mark, which would be a very bullish indication. Anything above that becomes essentially a buy and hold, but to be honest, that is just the current nature of the market. So, in my view, it would merely attract more customers. It is quite improbable that this market can collapse for any length of time until the Bank of Japan can alter its monetary policy, which it cannot do anytime soon. It's still a good swap, even though there will be rumors of Federal Reserve easing, which can cause some turbulence along the way. It also makes perfect sense that this pair would rise in value as long as that holds true over the long run.
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