The US dollar has fallen a bit during the trading session on Tuesday against the Japanese yen, as we have drifted just below the ¥113 level. This is an area that continues to see a lot of interest, especially around the ¥112.50 level, where the 50 day EMA is starting to curl higher. That area does in fact offer a certain amount of support, then it is likely that we would see a little bit of a bounce. All things been equal, we can stay above that level, then it is probably only a matter of time before we go to the upside.
USD/JPY Video 10.11.21
On the other hand, if the market was to break down below that level, then it is possible that we could go looking towards the ¥111 level. After that, then you have the ¥110 level. All things being equal, as long as we can stay above there it is likely that we should see this market continue to rally. However, if we were to break down below that level it is likely that we could see a significant break down. Breaking down below that level could send this market tumbling, as it is worth noting that the ¥115 level is of course a major barrier on the monthly charts that I have been watching for a while. Ultimately, I think that it is more likely than not that we see plenty of buyers, but we may have some work to do in order to stabilize everything. If we were to somehow break above the ¥115 level, then this market could really start to take off for a bigger move.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
