The ¥150 level underneath is of course an area that I think a lot of people will be paying close attention to, with a 50-Day EMA underneath rising to show signs of life. Ultimately, the indicator is racing toward the ¥150 level, so I do think that offers a bit of a floor in the market. With that being said, a short-term pullback makes a certain amount of sense, due to the fact that the market has been a little extended, so that short-term pullback could be a buying opportunity given enough time. You have to pay close attention to the interest rates in the United States; therefore I think we have a situation where the market still offers value on these pullbacks, so therefore it’s just a matter of waiting for cheaper pricing of the greenback in order to take advantage of it.
On the other hand, the ¥152 level above being broken to the upside would bring in more FOMO trading, having people run this pair up to the ¥155 level. I still think that happens eventually, because even if the Federal Reserve stands pat with this monetary policy, you still have a massive interest rate differential that will support the “carry trade” in this market. All things being equal, this is a market that I still have no interest in shorting, and therefore I think we have a situation where I’m just waiting for some type of price action to suggest that the buyer has returned to the market taking advantage of that swap at the end of every session.
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