This the Level to Buy the Yen on Wednesday

The Yen is pushing higher. These are the levels to watch.

Yen

The USD has been the driving force behind the USD/JPY in recent weeks. Since North Korea has all but been forgotten, this one is really becoming a good trade for those of you following the progress of the US tax cuts.

I spoke about the trendline that we can see on the charts and sure enough, we followed it to perfection yesterday. Depending on your perspective that could be viewed as a little bearish on a short-term chart, so with that in mind, I think there are a few other levels that we could consider buying.

Of course, long is my bias at the moment, given the progress of the Trump tax cuts.

 

Key Levels

At the moment I really like the 112.00 level. We have multiple indicators that suggest the level has some ability to slow down a falling Yen.

Firstly we have the all-important round number of 112.00. We also have the 50-SMA right there at the moment. And finally, the 112.00-112.17 zone is where we gapped up from on Monday.

To me, that means there is certainly an opportunity to be a buyer at that point. This is probably for those looking for a decent point for a longer-term position, however, I do suspect a short-term bounce if we can get down there.

Yen

USD/JPY -240 min Chart.
ABOUT THE AUTHOR See More
Rowan Crosby
Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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