US dollar falls from psychologically important ¥111 level
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The US dollar has run into a lot of trouble at the ¥111 level, rolling over to show signs of exhaustion. I think there is more than enough support below to keep this market afloat though, and that this major breakout above the ¥110 level signifies that we are going to go much higher over the longer-term. Look for buying opportunities based upon short-term pullbacks as it offers value in the US dollar, with the higher interest rates coming out of the country. With the Bank of Japan looking to be soft going forward, I just can’t make an argument for were selling this pair. I believe that we are going to go looking towards ¥112.50 level above, and then possibly the ¥115 level later this summer.
The ¥110 level should continue to be massive support, as it has proven itself as of late. If we did break down below there, I think there’s so much noise between the ¥110 level and the ¥107.50 level to keep the market afloat anyway. Longer-term, I believe that the buyers will continue to look for short-term pullbacks as an opportunity to take advantage of the overall uptrend it is now forming, and I believe it will last for several months, if not years. We had recently traded near a major uptrend line that held as support, which should continue to offer confidence in this market going forward. Selling is all but impossible for me.
USD/JPY Video 21.05.18
This article was originally posted on FX Empire