The USD/JPY pair fell during most of the session on Tuesday, but as you can see found a bit of support near the 117.25 level. With that being the case, the market appears as if it is ready to continue grinding sideways as it has over the last week or two. Ultimately, it’s only a matter time before we break out to the upside in our opinion, and we also see a significant amount of support below as well. I believe that this market will more than likely try to target the 120 level, and then possibly higher than that given enough momentum. But that’s the problem, we don’t have much in the way of momentum right now.
As we pullback, we believe that the 115 level below will be supportive, and is essentially the “floor” in the market. That area should continue to bring in buyers, and this is most certainly a market that is in a significant uptrend. With that, I am a buyer only, and have no interest whatsoever in selling. This is an uptrend that I think will continue for years to come, but right now it appears that we are simply grinding away.
Continuing to buy the dips going forward
I am continuing to buy the dips going forward as this market should continue to offer plenty of buying opportunities given enough time. With that being said, I am bullish of this market overall and just simply think that a lot of careers will be made as the Japanese yen continues to be worked against buying the Bank of Japan. On top of that, the Federal Reserve has step away from quantitative easing, which of course makes the value the US dollar go higher.
Today is the FOMC announcement, and while I do not anticipate anything been done about the interest-rate itself, to pay attention to the market’s reaction to the question-and-answer and statement. That being the case, we could get a little bit of volatility but it should end up being a buying opportunity of a pullback. We could of course break out above the 120 level, which should send this market looking towards the 122 handle.
