- The US dollar initially pulled back against the Japanese Yen during the trading session on Thursday but has found a bit of buying pressure to turn things around and at least attempt to show signs of life.
- The 50-day EMA sits just below the current area and that should continue to offer a bit of support and ultimately, I do think that we could eventually go looking to the 158 Yen level.
Short-term pullbacks, I believe, continue to be buying opportunities in a market that quite frankly has been very noisy to say the least, but at the end of the day, you should also keep in mind that you get paid to hold the dollar against the Japanese Yen and that's something that a lot of people are going to be watching for a while.
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After all, we have seen this market really show signs of volatility but at the end of the day the 200-day EMA has offered a hard floor in the market. If we can break above the 158 Yen level, then things get very interesting as the W pattern would be confirmed and we could go looking to much higher levels.
In fact, the suggested measured move would be for a move to the 164 Yen level. Why that's important to me is that it clears a swing high from 1990 and it could lead to a move to the 250 Yen level before it's all said and done. Don't get me wrong, I don't think that's something that's easily obtained, but it does look like something that's very real and you have to keep that in the back of your mind. I continue to buy on dips.
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