The US dollar gapped higher against the Japanese yen at the open on Monday, and then reached to a fresh, new highs. The market looks likely to see this market reaching towards the 114.50 level, now that we have clear the 111 level. Ultimately, the market continues to offer value on dips, especially in the stock markets continue to rally. A pullback from here should continue to find plenty of support just below, and I think it’s only a matter of time before the buyers return when we do pullback based upon value. Now that the “risk off” trade has abated, this pair should continue to go higher. It is not until we break below the 109.85 level that I think the sellers will take over again.
Written by FX Empire