US Dollar vs Japanese Yen Technical Analysis
The US dollar initially shot straight up in the air during the trading session on Monday but pulled back a bit as we may have run out of momentum. It’s interesting to see this candlestick action, because the previous two sessions were hammers, suggesting that there should be plenty of support underneath. In other words, it’s very likely that we may need to consolidate in the short term to get some type of clarity. In this scenario, it’s very likely we may grind back and forth before continuing the overall trend because quite frankly nothing has changed, other than momentum perhaps.
The Bank of Japan continues to work against its own currency by buying unlimited bonds, despite the fact that overnight it stated that “currency move should reflect fundamentals”, which quite frankly, they have been doing. ¥132.50 level should be supported, assuming that we can even get down there….
