The US dollar has initially drifted against the Japanese yen during the Friday session to the downside, but quite frankly does not seem to have anywhere to be anytime soon. With that in mind, it is likely that we are going to continue to see the market look at the ¥107.50 level as a bit of resistance, as well as somewhat like a magnet for price based upon the way things have behaved. Ultimately, both of these are safety currency so you should keep that in mind as they tend to move on the same fundamentals quite often.
When you look at the longer-term charts, it is obvious that you can see a larger triangle, but quite frankly we are nowhere near breaking out of it so I think we continue to see a lot of back and forth in this pair with significant resistance between ¥107.50 and ¥108, into the downside I see quite a bit of support at the 160 and level.
USD/JPY Video 29.06.20
If you are a short-term trader, perhaps something like a five or 15 minute chart might suffice, and you could simply play back and forth based upon the overall choppiness. Do not get me wrong, we will eventually get a move that is bigger, but right now we seem to be nowhere near it, and therefore I am not holding my breath. Short-term trades are about as good as this gets, but eventually we should see an opportunity to take advantage of an impulsive daily candlestick, and perhaps some type of momentum reentering this currency pair.
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This article was originally posted on FX Empire
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