- I see that we have bounced significantly from the 50 day EMA, and now it looks like we are threatening the ¥116 level.
- If we can break above the ¥116 level, it's likely that this market could really start to take off to the upside.
If we can break above the ¥116 level on a daily close, I will be a buyer, and I think it's probably only a matter of time before we go looking to the ¥118 level underneath, we have the ¥115 level, which I think has shown itself to be important more than once, but especially on Monday as we turned around to form a hammer.
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And I think this is a situation where we are going to continue to see people hanging on to this for the interest rate differential and of course, the general malaise that comes with a, owning of the Japanese yen. I just don't see how you do it. So, with this being the case, I am going to continue to look at this through the prism of a market that you are buying dips in, and if you are patient enough, you should see the longer term uptrend continue. The longer term trend is there for a reason. And quite frankly, despite the fact that we have had a nice little pullback, I don't see this changing anytime soon. So, with this, I remain bullish, and I have no interest in trying to find the overall trend. Thereby, I am a buyer above the ¥116 level on a daily close. Or really, if you are willing to take on a little bit more risk, this might even be a decent area here as well.
Oil
Don’t forget that the market is highly sensitive to the oil markets, as the Japanese are forced to buy their oil from foreign sources, especially Canada. The new trans-Canadian pipeline only solidifies this fact, and therefore the pair will continue to pay attention to demand from Japan, as well as those ultra-loose interest rate policies coming out of Japan.
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