- During the trading session here on Wednesday we've seen the Japanese yen lose strength against most currencies.
- That of course will include the U S dollar. The U S dollar is approaching the 149 yen level, which has been a massive amount of resistance previously.
- So, we'll see whether or not we can get above there and cotinue the overall resistance barrier fall by the wayside.
Inverted Hammer and Doji Broken
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We are breaking the back of an inverted hammer from a couple of days ago as well as a very neutral candlestick from the previous session at this point It does look like we have a bit of momentum So I think we have to look at this through the prism of whether or not we can actually break out and stay above 149 yen if we do then the market likely goes looking to the 151 yen level possibly even higher than that. In fact, we could be seeing the start of a trend, although it is too early to tell with this pair.
On the other hand, if we show signs of exhaustion near the 149 yen level, then I think we just sit in this same range. The action over the last couple of weeks since the FOMC press conference certainly adds more credence to the idea of short-term pullbacks offering buying opportunities in a market that pays you at the end of every day to be holding US dollars in short of the Japanese yen.
I do think it's probably only a matter of time before we rally, and it is worth noting that the US dollar has been extraordinarily stubborn to selling against other currencies around the world, and the Japanese yen doesn't look to be any different as the US dollar tends to move in the same direction against most major currencies.
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