US dollar continues to bounce around against yen on Friday

The US dollar has initially falling during the trading session on Friday, reaching down to the ¥109 region. This is an area that of course has caused a bit of noise, but when I look at the longer-term charts, the weekly time frame in particular, it seems that the shooting star that’s forming could suggest that perhaps we need to roll over a bit, perhaps giving a bit of a break to the US dollar strength.

If we break down below the 190 level, then I think we go down to the ¥108 level, and then perhaps down to the ¥107.50 level, an area that has previously been massive resistance, which of course now should be support. I think that a move to that level could be a nice buying opportunity and give us an opportunity to take advantage of the massive amount of noise that we have seen at that level, and the noise that extends down to the ¥105 level. There is a massive uptrend line underneath that should continue to hold this market out. I think that if we can turn around a break above the ¥110 level on the flip side, then we could go much higher, perhaps reaching towards the ¥112.50 level longer term. I like buying dips in general, but I also recognize that we may have a little further to go to the downside before fighting the necessary value.