The US dollar has pulled back just a bit against the Japanese yen during trading on Wednesday, as we approach a major gap at the ¥111 level. That of course is something that quite common in the Forex markets, gaps getting filled, so I would anticipate that a lot of traders out there are looking to do just that. That being said, this is a market that is very sensitive to news and risk appetite, especially as it is expressed in stock markets for example. The S&P 500 is a holding pattern just happening, and that means that this pair will probably be somewhat choppy and sideways overall.
USD/JPY Video 23.05.19
The ¥111.15 level is the top of the gap, and an area where the 200 day EMA is currently trading. If that is broken to the upside, then we could go as high as ¥112. To the downside, I think that the ¥109.70 area is support all the way down to the ¥109 level, so overall I think what we are going to see is back and forth trading with an eventual eye towards the gap. With that in mind, I am a buyer of short-term dips but I’m not looking for anything major to happen. I think this is a short-term traders type of environment, which is fine just make sure that you’re using short-term charts to make your decisions.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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