US dollar grinds sideways against the Japanese yen during Friday trading

The US dollar initially tried to rally during the trading session on Friday, but then turned around to show signs of weakness. I think that the 109-level underneath is supportive, but we could very well break down from there, I think the next support level underneath is the 108.50 level. I would anticipate a bit of a bounce there, as we have seen a lot of strength in this pair, and of course interest rates are rising in the United States. I think it is going to take a lot of momentum to finally break above the 110 level, which I see as the major resistance barrier. If we were to break above there, the market could go to the 110.50 level next. Ultimately, this is a market that should continue to be noisy, as it typically is. However, I like the uptrend in this market, and I am willing to buy pullbacks based upon value. If we were to break down below the 108.50 level, the market probably could unwind to the 107.50 level. That’s an area that should be overall support, and I think that if we were to break down below there, then we could unwind rather rapidly. This would of course involve some type of major “risk off” event, something that of course is possible but, in the end, it looks as if the market has made up its mind.

I’m willing to buy slowly, and then add to my longer-term position as it should start a longer-term move to the upside.