The US dollar has initially fallen against the Japanese yen, but has since turned things around in favor of bulls, as the buyers reemerge later in the session.
USD/JPY
The US dollar has rallied a bit during the trading session after initially selling off against the Japanese yen. The interest rate differential continues to cause a little bit of a headwind for the Japanese yen recovery, and really at this point in time, it looks like a longer-term trendline has come to boost the US dollar as well.
Top Regulated Brokers
I've been long in this market for months and have not stepped away despite the fact that there have been a few interventions by the Bank of Japan, because quite frankly, most of the time interventions are to slow the market, not turn it around. And if I had shown you this chart from a longer-term perspective and said which direction do you want to be in, I think it's kind of obvious.
Trendline Support and 160 Resistance
The 160 yen level above is significant resistance, but if we can break above there, then we can really get moving. In the meantime, I get paid to hold onto this contract every day to the upside, and I will continue to do so, at least until we break down significantly from here.
With this, shorter-term traders seem to be willing to step in and buy the dip as well, and with that positive swap at the end of every day, you do get paid if you're patient enough. It's more or less a matter of proper position sizing at this point. And with rates in America dropping a little bit during the day, but the US dollar still attracting inflows, interesting price action here. The market continues to be one that I remain bullish on. I like buying dips, and as things stand right now, my attitude has not changed.
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