The US dollar went back and forth against the Japanese yen as we are at the top of a major support zone. The ¥109.70 level is the beginning of massive support down to the ¥109 level, so it’s not a surprise that we slowed down our descent in this market. The question now is whether or not we can hold this area, which I think is quite stringent. Keep in mind that this pair does tend to move along with stock markets, and of course risk appetite if that’s the case, you can keep an eye on the S&P 500 to give you an idea as to where this market may go. After all, the market continues to see a lot of volatility when it comes to stocks, so that could make this more of a grind.
USD/JPY Video 27.05.19
There is a gap above that has yet to be filled at the ¥111.15 level. I do believe we will eventually go to that area, but it’s going to take some time to get there. The alternate scenario is that we break down below the ¥109 level, which if we do we could go looking towards the 100 a and level underneath which is also supported. That would more than likely coincide with something rather nasty happening in stock markets and risk appetite around the world as the Japanese yen is considered to be the safety currency in this pair. Ultimately, I anticipate that there will be buyers do pick this market up on some type of dip, but of course we need to keep an open mind.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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