- The US dollar continues to pressure the yen to the upside and as I look at the chart, it's easy to see that the market has shown itself to be very resilient.
- Anytime we have pulled back, it looks like the market is going to continue to find buyers.
The USD/JPY market has been very reliable as of late, and I don’t see the attitude changing anytime soon. However, you should also be aware that the Bank of Japan could “jawbone” this pair form time to time, but as far as actually doing something – I wouldn’t hold my breath on that one.
The market is currently paying close attention to the 155 yen level. This is an area that I think a lot of people are going to continue to look at through the prism of it being a brick wall. If we can get above there, then I do think it is probably only a matter of time before we go reaching the 157 yen level.
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The market has been very noisy as of late, but every time we fall, plenty of buyers jump in and try to take advantage of cheap US dollars. Remember, you get paid to hang on to this pair, and that's been a winner so far. If we were to pull back from here, the 152 yen level is a major support level, so I would anticipate that it continues to be as it was previous massive resistance. With that being the case, I like the idea of buying the dip and simply finding cheaper green bags. Once we break above 155 yen on a daily close, I'll probably add. The Bank of Japan has no real shot at tightening monetary policy, so as long as that's the case, I do think that the US dollar continues to pummel it. I have no interest in selling, and quite frankly, it would take a stunning reversal by the Federal Reserve for me to think about doing so.
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