The US dollar has rallied a little bit against the Japanese Yen, but we are getting a little bit stretched here. What I would like to see is a little bit of a pullback in order to find value so that we can take advantage of any cheap dollars that we can find.

The 50-day EMA sits just above the 150-yen level, and it is an area that I think will continue to be important—a little bit of a floor, if you will. Above, we have the 160-yen level, an area that I think a lot of people will have to watch closely due to the fact that we had seen the Bank of Japan intervene in that general vicinity. That being said, this is a situation I think you’re looking to buy dips, taking advantage of the interest rate differential and any value you can find.

GBP/USD Technical Analysis