The US dollar has gone back and forth during the course of the week, testing the ¥160 level for support. We have bounced from there, and even rallied enough to test the ¥107.50 level.
This is a pair that will put you to sleep as of late. However, I have been using it as an indicator on how to trade the Japanese yen against other currencies. The theory of course is that if it rallies against the US dollar, then the Japanese yen should strengthen against other currencies. Obviously, the exact opposite is true as well. As far as trading this currency pair is concerned, it has been a bit difficult unless of course you are looking for range bound trading which it excels in at the moment.
USD/JPY Video 29.06.20
The ¥106 level has been obvious support for a while, it certainly looks as if it will continue to be important. I think at this point it is obvious that the market is trying to figure out where to go next but looking at this chart the longer-term triangle that is forming is probably the most important thing to pay attention to for longer-term traders.
If we break down below the ¥105 level, that could be a major move just waiting to happen. On the other hand, if we break above the top of the down trending line, it is likely that this will begin a massive trend change that could go on for months, perhaps even further than that. Looking at this chart, it is obvious that you need to be very patient if you are trying to form a longer-term thesis for a longer-term trade. Right now, we have a couple of levels to pay attention to, but we do not have the signal.
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This article was originally posted on FX Empire
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