Yen Remains Under Pressure, But For How Long?
I continue to wait for the USD/JPY to break above the 50-Day SMA at 90.56 before entering a fresh long position. Today’s momentum has the pair testing the resistance level a break above would lead me to target the 200-Day SMA at 91.91, trend line resistance may come near 91.30 and should be monitored. Risk appetite continues to grow despite the lack of job growth as we continue to see relief from markets over Greece’s plan to reduce its deficit. However, fears could re-emerge in an instance as traders continue to be sensitive to the news cycle. Therefore, the longer-term rally in the pair that we have been forecasting may still be a ways off. I am also focusing on commodity yen crosses like the CAD/JPY and AUD/JPY which appear vulnerable to a retracement.
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