The USD/JPY pair is still finding support on the downside, particularly looking to see if the 152 yen mark can hold.
US dollar yen
While the US dollar saw a slight recovery against the Japanese yen at the start of trading on Monday, it’s important to note that trading volume may be lighter due to the President’s Day holiday in the U.S.
This market seems to be searching for a stable point, possibly taking the 200-day EMA as a supportive factor.
Search for support level
If prices drop below the 152 yen threshold, they might then slide down to around 150 yen. Considering the Bank of Japan’s issues with excessive debt, persistent purchases in the market are likely. However, it’s also crucial to acknowledge that high-interest debt isn’t a viable long-term strategy.
Ultimately, I see potential for this market to reverse course upward. The real question is if and when that will happen.
This seems like a pivotal moment for many traders. If the market doesn’t bounce back here, I’m eyeing the 150 yen level for a potential buy. Shorting this pair isn’t something I’m interested in, mostly because I dislike the cost of carrying swaps. It feels like there are some unsettling headlines stirring the pot.
In conclusion, it’s worth mentioning that U.S. economic indicators are generally stronger than anticipated, suggesting that buyers are likely to return eventually.
