US dollar falls against Japanese yen on Thursday

The US dollar has pulled back rather significantly during the trading session on Thursday, reaching down towards the ¥109.25 level. This is an area that was resistance over the last several days, and now it’s offering support. That’s exactly what you expect, and when I look at this chart, I cannot help but notice that we could be forming some type of big “W pattern” which of course is a very bullish sign. I think that the ¥110 level is an area that will take several attempts to break above. If we can break above there, then the market goes looking towards the ¥112.50 level. Otherwise, every time we pull back it should be looked at as an opportunity to pick up momentum.

Ultimately, I think that we will find value hunters given enough time, because quite frankly I don’t think the Federal Reserve is going to change its plans. The first even mildly hawkish words out of a Federal Reserve member, this market turned right back around to slamming into the ¥110 level. I think it will take more than just one more attempt, but I think this is also the move and that will define what happens this summer. I believe that there is a significant amount of support down to at least the ¥107.50 level, so I look at this as a potential buying opportunity and will do so at the first signs of stability.