US dollar falls against Japanese yen on Monday

The US dollar has fallen during the trading session on Monday, which probably had some type of issue due to the lack of volume as well. Remember, the Americans were away for Memorial Day celebrations, and that of course would have an effect on at least a good half of the trading session. I think that the ¥109 level underneath will continue to be support, just as the ¥110 level should be resistance. If we can break above the ¥110 level, then the market could go much higher, perhaps reaching towards the ¥111 level. Ultimately, I think that the market will continue to go higher, but I also think that you will need to deal with a significant amount of volatility.

Market participants could send this market lower, and if we break down below the ¥109 level, I think that we would “reset” to try to find support. This would be found at the ¥107.50 level, an area that has been very important in the past and should be important in the future. Nonetheless, I do prefer buying this pair, but I think we need to see a little bit of momentum pick up so that we can take advantage of what would be the overall proclivity. I believe that if we break down below the ¥107.50 level, then I think that the ¥105 level would come into play. At longer-term though, I think that this market is going to try to reestablish the uptrend due to interest rate differentials.