The USD/JPY pair gapped higher at the open on Monday, only to turn around and pullback to fill the gap. The 112 level has offered support, and it looks as if we could see buyers jump back into this market. However, if we break down below the 111.75 level, the market should continue to fall towards the 110 level. Ultimately, this is a market that should continue to see a lot of noise, as the USD/JPY pair almost always is noisy. I think that risk appetite will come into play, and of course the Federal Reserve and its intentions will as well. I believe in buying dips, as the market continues to be volatile, and I think that eventually we will see the market make up its mind to go towards the top of the longer-term consolidation, which should send this market to the 114.50 level.
I continue to see choppiness in this market, and I believe that the 108-level underneath is essentially the “floor” in the market. I don’t have any interest in shorting this market, and I believe that pullbacks should be buying opportunities based upon support. Ultimately, this is a market that should continue to be noisy, but I think that it should offer plenty of opportunity for those of you who are patient enough to look for supportive actions as well as impulsive move so the upside. Ultimately, if we can break above the 115 handle, the market should continue to go even higher, but that’s a longer-term move in my estimation. I believe that we are trying to form some type of base for a longer-term move, but currently the noise in this will keep this market looking for short-term trades in both directions. For myself, I prefer buying as I think it will bold well with the longer-term attitude.
Written by FX Empire