• The Euro initially pulled back just a bit during the trading session on Wednesday against the Japanese Yen.
  • It looks like the 169.40 yen level continues to offer at least a little bit of support and therefore we have turned around to show signs of life.
  • All things being equal, this is a market that I think continues to see a lot of noise and it does look like we are trying to build up enough pressure to go higher.
  • The 50 day EMA underneath is near the 168 yen level, and I think that is a bit of a short term floor in the market. I like the idea of buying dips mainly due to the fact that I don’t like the yen at all. It’s not even that I like the euro, it’s just that I think the yen is in that much trouble. Value Hunters Will Be PresentShort-term pullbacks continue to find value hunters jumping into the market, and then of course, you have to keep in mind that you get paid to hang on to this pair, just like you do almost anything else denominated in yen. With this being the case, there’s no real need to fight this, and if the euro does in fact bounce against the dollar a little bit, and it looks like it might, that should help this pair as well. If we can break above the 171 yen level, then I think we could make a serious run towards the 175 yen level over the longer term. I don’t know that we have the massive and pulse of up days that we used to, but I do think that we have more of a grind to the upside that will continue to attract inflows. As far as selling is concerned, I wouldn’t even consider it until we broke below the 165 yen level. And really at this point, I just don’t see that happening very easily, and therefore I am currently “long only” in this pair.More By This Author:USD/CAD Forecast: Range Favors USDBTC/USD Forecast: Downward PressuresUSD/JPY Forecast: USD Strong Against Japanese Yen

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