This the Level to Buy the Yen on Wednesday - Forex News by FX Leaders
Yen

This the Level to Buy the Yen on Wednesday

Posted Wednesday, December 6, 2017 by
Rowan Crosby • 1 min read

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.
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About the author

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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