As you would all probably know, the USD has taken a bit of a hit this week. On Tuesday it tumbled and the forex majors have certainly been in the firing line. The Yen was one of the majors that felt the pinch the most.
Not all that long ago we were testing the highs at 114.50 and we are now down to a 112 handle. However, it appears that we have managed to find some support for the time being.
Key Support
I wouldn’t be all that surprised if 113.00 is a strong level for us. It’s one that I’ve been focused on for a little which and we are trading around that area right now. However, I would be targeting 112.50 for a long entry.
Looking at the US Dollar Index, we have bounced off support in the 93.50 area and clearly, these are both highly correlated, as the USD is the key driver at the moment. While I do think that we should be bullish on the USD going forward it wouldn’t hurt to take a more conservative entry as we are in a period where volatility has been expanding.
Top 4 Brokers
