The US dollar initially tried to rally during the trading session on Wednesday, before pulling back to show signs of weakness yet again at the ¥108 level. This is a market that continues to see a lot of noise in general, and the ¥108 level has been an area of importance. The 200 day EMA above continues to offer quite a bit of psychological resistance as well, so at this point I fully anticipate that this market will go looking towards the ¥107 level yet again. This is an area that has been important support as of late, so I fully anticipate that it will be a target for short-term traders. If we can break down below there, then we can get a little bit of acceleration.
USD/JPY Video 21.05.20
Ultimately, we are in a downtrend as of late, and the 50 day EMA is of course causing a bit of interest in the pair as well. This is a pair that is overly sensitive to risk appetite, so it will be interesting to see how this goes as there is a lot of volatility in both directions of the risk spectrum. I do believe that the Japanese yen is winning, at least in the short term. If we broke above the ¥109 level that would change everything obviously, but at this point in time that does not look likely. I believe this is a market that will continue to be very noisy in general, as people are not sure what to do with the Federal Reserve and its mission to kill the US dollar.
This article was originally posted on FX Empire
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