US dollar pulls back slightly against Japanese yen on Tuesday

The US dollar has pulled back slightly during the trading session on Tuesday, as the ¥110 level has offered significant resistance. It’s a psychologically important number obviously, but on the daily chart we have the 200 day simple moving average right around that level as well, which of course attract a lot of attention. I do think that eventually we go higher though, especially if the interest rates climb in the United States. But remember that this pair also has a lot of sensitivity to the stock markets as well, so if the S&P 500 rallies, it’s likely that we will see this pair rally as well.

I think that the ¥109.50 level offers a certain amount of support as well, as well as the ¥109 level. Overall, I believe that the market will continue to be very noisy, but overall I believe that the uptrend should continue. I think that we are trying to change the longer-term trend, which is almost always a very noisy event in the pair as it tends to be volatile in general. I think that the market continues to see a lot of volatility based upon the geopolitical events as well, especially when it comes down to the situation of conversations between the United States and North Korea. In general, I believe that if those conversations are fruitful, that should send this market much higher. I believe that if the talk of geopolitical trade wars could cause major issues in this pair but right now it seems as if the cooler heads are starting to prevail.