On Wednesday, the US dollar made an extremely modest retreat early, and there is still a lot of volatility around the ¥150 mark. The market is probably going to search for support at the ¥152 level if we can break above the ¥150 level, which has been a significant region for a while. The market has already seen a lot of strong resistance at the ¥152 level, so if we can break above it, things might really start to go higher.
It’s probably important to note at this point that the Bank of Japan is making every effort to keep interest rates low in that nation and has lately entered the bond market directly. The Federal Reserve’s decision to maintain higher interest rates means that purchasers are still drawn to temporary declines. Indeed, dealers are still being paid to stay in this market.
Significant support is provided by the level ¥147.80 beneath, and the 50-Day EMA is now located there as well. Naturally, it makes a lot of sense that we would view it as a transient “floor in the market” that will attract a lot of attention. Given this, I believe we have created a position where the market must decide whether or not to attach itself to this. As long as we do, I believe that buyers will likely enter the market and remove the upper peaks.
Some traders are anxious since the Bank of Japan is known to play about and hide in the shadows. These individuals think that because they have already intervened, the market has been stopped at this moment. Still, it seems clear to me that the market is still biassed towards the upward. We’re going to have a lot of choppiness and volatility, but eventually we’ll break out higher. In the end, I believe you will need to exercise patience, but the purchasers will ultimately gain control.