US dollar rallies again against Japanese yen on Thursday
The US dollar has exploded to the upside during the trading session on Thursday, as we have cleared the ¥110 level significantly. Because of this, I think it’s only a matter of time before the buyers get involved and that they will continue to be value hunters. I believe that a lot of this comes down to the US dollar strengthening overall, and the rising interest rate in the USA. Because of this, I think that the Bank of Japan keeping its monetary policy very loose should continue to boost this market as well. As interest rates rise in America, that continues to put a lot of buying pressure in this market. The “double whammy” is the fact that stock markets are going to continue to find buyers, which is typically good for this market as well.
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I believe that the ¥110 level should continue to offer a significant amount of support, and if we break down below there I think it would represent a turning point in this pair. I like the idea of buying short-term dips and will continue to do so as I think we are probably going to go to the ¥112.50 level above, which should be a bit of resistance based upon the longer-term charts. I think the summer is going to be good for the US dollar, and we should continue to see the greenback rally against the Yen overall.