Yahoo Finance A Cycle of Opportunities for Yen Traders
The U.S Dollar was sold against the Yen and the forex pair has entered a testing ground of support for the Japanese currency.
Yen Enters a Testing Ground for Support
The Yen has gotten stronger against the U.S Dollar and is near 112.80. The Japanese currency has entered an important range which is testing near-term support levels.
The U.S Federal Reserve’s interest rate hike yesterday was widely anticipated, and the Yen became stronger after the official move from the States.
Confirmation from U.S Fed Helped Yen
The hike from the U.S central bank had already been factored into the marketplace, and its confirmation allowed investors to step forward and sell the U.S Dollar against the Yen.
A look at a mid-term chart of the Yen shows the multi-faceted challenge the currency has provided the past couple of months, and the one it is likely to present in the immediate future.
Taking Advantage of Yen Range
The Nikkei Index has put in an outstanding again this year. The big Japanese equity exchange has added more than 17 percent of value.
This has been done as Asian traders have taken advantage of the weaker Yen. However, in recent trading, the Yen has shown a tendency to range trade. And we believe traders may be tempted to continue to sell the U.S Dollar against the Yen during this current trading cycle.
In the short term, we believe the Yen will be positive. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
