The US dollar has fallen initially against the Japanese yen on Tuesday but found enough buyers underneath the turn around and start reaching towards the ¥112 level yet again. If we can break above that level, and then the ¥112.25 level, then this pair should continue to go higher. Beyond that, it does tend to move along with the S&P 500, so if we can get a breakout over there, then it should be good for this pair also.
USD/JPY Video 24.04.19
So far, what we have seen in this market is that buyers are willing to step in and pick up value on dips, as the market has been grinding so much. Ultimately, this is a market that can also be thought of as a respirometer but in the end of the greenback is by far the strongest currency of the majors right now. If we can continue that overall theme, then obviously this pair should go higher.
Just below, we have the 50 day EMA and read and the 200 day EMA and black. As we have just had a nice golden cross, there will be longer-term traders looking to buy here as well. If we do break out, I suspect that the ¥113.50 level will be the target eventually, but it may take a little bit of time to get there. To the downside, I see the moving averages as the major support right now, right along with the ¥111 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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