The US dollar pulled back a bit during the week, bouncing slightly as we continue to grind back and forth just below the ¥112 level. A break above the top of the candle stick should send this market towards the ¥113.50 level, but obviously we have seen a lot of trouble in the near term to keep this market very difficult to deal with from a longer-term standpoint. That being said, the candle stick from the previous week is very bullish so it’s likely we are trying to build up the necessary pressure to go along at this point.
USD/JPY Video 22.04.19
The alternate scenario is that we break down below the candle stick from the previous week, which would be a very negative sign, slicing through the ¥110.80 level. That of course would be a very negative sign and should send this market to the ¥110 level. At this point, it’s very likely that the market participants will be making a serious decision rather soon, but until we see some type of impulsivity, it’s difficult to put money to work. We have the level is worth watching, but in the meantime the market simply doesn’t know what it wants to do.
This chart is very similar to the S&P 500, which is simply stalling at major resistance as well. At this point, we probably need the S&P 500 break out to the upside in order for this pair to do the same. If the S&P 500 breaks down, then this pair may very well do the same.
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This article was originally posted on FX Empire
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