• Looking at the US dollar against the Japanese yen, we did pull back just a bit during the trading session here on Tuesday, as the market may have gotten a little bit ahead of itself on Monday.
• At this point in time though, short-term pullback should end up being a buying opportunity in this currency pair, as the Japanese yen itself is being sold off against most things.

It’s also worth noting that speculators are net long, but commercials, the so-called smart money, is short three to one in the Japanese yen in the futures market. So that’s an extraordinarily bearish sign for the Japanese yen for this pair. The US dollar pulled back against most things. So, when you look around the horn here against the Japanese yen, most currencies had a very good day.

Despite the USD Dropping, this is About the Yen

So, this is a Japanese yen weakness type of story. The US dollar was sold off pretty drastically. So that’s the only reason this chart looks the way it does. Ultimately though, I think you’ve got a situation where traders will continue to look at this through the prism of a market that needs to sort out a lot of questions when it comes to risk appetite as is the main driver of this market, but you do get paid to hang on to it at the end of the day. And I do think that we are going to try to get 150 yen.

The 200 day EMA sits just below there. So, it’s possible that it could be a bit of a significant barrier. All things being equal, short-term pullbacks, I do think offer plenty of support near the 50 day EMA as well as the 145 yen level underneath offer in support. I am bullish in this pair. think we just made a major double bottom. We’ll have to wait and see if I’m right. But when you look at the longer term charts, you can see that it’s actually not even a double bottom. It’s a triple bottom that’s held at 140 yen. So that’s something to consider.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

• During the session on Tuesday, we saw a significant bounce from the crucial 50 Day EMA, an indicator that a lot of people will look at as potential support.
• The fact that we bounced from there, and perhaps even more importantly the 1.11 level, suggest that there is still a certain amount of life left in the Euro still.
• That being said, I am watching an area above to see if we get more selling pressure, because when I look at the longer-term charts it seems as if the momentum is starting to swing a little bit more favorably for the US dollar, although there are a lot of different things happening at the same time.

Technical Analysis

The technical analysis for this EUR/USD pair remains bullish, and the fact that we bounce from the 50 Day EMA is something worth noting. However, it would be foolish not to notice the fact that we just broke down through a 100 pips support range in the form of the area between 1.12 and 1.13. This is a market that got a little ahead of itself, and it is worth noting that the 1.12 level was the top of a massive consolidation range that we have been in previously. Because of this, if we do continue to fall from here, we may simply reenter the previous consolidation range as we’ve seen this market have a “throw over” to the downside, so one to the upside makes a certain amount of sense as well.

The size of the candlestick is reasonably strong, but when you look at it through the prism of what happened during the previous 24 hours, it still lacks true conviction. The one thing that does go for it is of course the fact that we bounce from the EMA, and of course the fact that the Euro has been bullish for the last couple of months. Ultimately though, I think we are about to see a lot of noisy behavior because the United States and Europe still do not have a trade agreement, which could cause some issues for the EU itself.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

• The British pound initially pulled back a bit against the Japanese yen, but it has found support at the 195 yen level.
• This is an area that is a large round psychologically significant figure and an area that I think you probably would expect to see a little bit of noise regardless.
• The shape of the candle is rather impressive, and it does suggest that we have further upward pressure.

At the end of the session, we are closing, at least it looks like we will, at the very top of the range of the day. At this point, I suspect that if we continue to see more risk on behavior, the market will likely try to get to the 198 yen level, possibly even the 200 yen level. Short-term pullbacks, I think at this juncture continue to offer value. And you should keep in the back of your mind that commercial traders are net short of the Japanese yen in the futures market, which gives us an idea as to how the big money might be targeting this market.

Swap Matters Over the Long Term

But also, it’s worth noting that this is a market that pays you at the end of every day to hold on to it. So, there is a reason to pay close attention to that. The 200 yen level is probably a major ceiling, and I don’t necessarily think we break through that easily, but this is a chart that looks like it wants to try to go back there and test that area. Underneath, we have significant support near the 193.50 yen level, and then again at the 200 day EMA, which is close to the 192 yen level. Ultimately, I am bullish, and I do think that short-term pullbacks offer short-term buying opportunities.

Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Platinum price forced to provide slow sideways trading, due to the continuation of the main indicators’ contradiction, to keep its fluctuation near the $991.00 level, while the continuation of forming sold barrier at $1005.00 level will increase the chances for activating the negative track, to attack the moving average 55 at $965.00, then press on the support at $950.00.

While regaining the bullish bias requires forming a strong bullish rally, to surpass 61.8% Fibonacci correction level at to confirm its readiness to record new gains that begin at $1027.00, to confirm its readiness to record new gains that begin at $ 1027.00 and $1040.00.

The expected trading range for today is between $965.00 and $ 1000.00

Trend forecast: Bearish