US Dollar Reaches Resistance but Pulls Back

The US dollar has rallied during the trading session on Tuesday to reach towards the ¥115 level before pulling back a bit to form a bit of a shooting star. That being said, I do think that this market will probably continue to rally over the longer term but pay close attention to whether or not the market is moving based upon interest rates in America, or perhaps a fear-based trade. That being said, it is interesting to see that the market gave back his quickly as it did, and the Japanese yen is starting to strengthen against multiple currencies. Because of this, it suggests that we are more or less that this is a fear-based trade more than anything else, so once things calm down a bit, I do believe that we will turn back around.

USD/JPY Video 19.01.22

With that in mind, I prefer this as a “buy on the dips” situation. Ultimately, this is a market that I do think will eventually try to reach the highs again, but I am not necessarily sold on the idea of jumping “all in” right away. Full disclosure: I have already closed my long position in this pair and will more than likely look to find some type of dip in order to take advantage of any type of value. I think there is plenty of support extending all the way down to the lows of the Friday session last week. With that in mind, I am simply looking to short-term charts in order to take advantage of any type of value that occurs.

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