US dollar rallies against Japanese yen

The US dollar has rallied slightly against Japanese yen but continues to find the ¥110 level as significant resistance. There is a lot of noise just above in the market, so if we can clear the ¥110.25 level, market should then go to the ¥111 level. I think that short-term pullbacks continue to be buying opportunities, and I believe that there is also a significant amount of support at the ¥109.25 level. In general, it’s likely that the market should continue to be very choppy and of course noisy, but overall it looks as if the buyers are trying to build up enough momentum to finally go to the upside longer-term.

Keep in mind that there is a lot of pressure in the marketplace built upon expectations in the summit between the United States and North Korea, and that of course there is a lot of uncertainty and that the market. If we can get some type of positive outcome, is very likely that the market should continue to go right along with risk appetite, and if the market gets good news from the geopolitical front, that should drive this market higher as not only will it be a bit of a relief rally, but it also could follow right along with stock markets that should do the same. If we get some type of negativity out of that meeting, then this pair should break down significantly.