This the Level to Buy the Yen on Wednesday

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.

USD/JPY -240 min Chart.