The USD/JPY has shown some strength against the Japanese yen during Monday’s trading session, as it continues to push higher against the yen. However, the market is still trying to determine if this upward trend is sustainable or if the recent pullback is a sign of something more significant.
The Bank of Japan’s yield curve control policy and the rising rates in the United States could be reasons for the upward pressure on the dollar, but it’s important to note that the US dollar is currently struggling against most currencies. The market is forming a higher level or a double bottom, which suggests that the market may have to make a significant decision soon.
While it’s likely that the Japanese yen will continue to struggle, it’s important to note that the global economy is in flux, and the market may see a lot of noise before a clear trend emerges. Technical analysis shows that the 200-Day EMA and the 50-Day EMA are providing support for the market, so pullbacks could be opportunities for traders to buy. The ¥130 level is a significant support level, and it’s not until the market breaks below that level that there should be concerns about a potential bounce.
USD is Facing Resistance Against Most Currencies
- On the upside, the ¥137.50 level could be a target, and if the market breaks above that level, it could become more of a “buy-and-hold” market, leading to a significant upward trend.
- While last year saw massive moves, a general uptrend is more likely to form in this situation.
- However, the bond markets have been very volatile as of late, and this can cause chaos in this pair due to the current monetary regime coming out of Tokyo.
- This is by far the biggest influence now and will probably continue to be the story going forward.
While the Japanese yen is struggling, it’s also important to note that the US dollar is facing resistance against most currencies. It’s worth watching for potential shifts in momentum or changes in the global economic climate that could affect the market. Overall, the market is likely to see a lot of noise and support from the EMA levels, and traders may find pullbacks to be opportunities for buying. A break below ¥130 would be a cause for concern but breaking above ¥137.50 would indicate a potential long-term uptrend.
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