The Yen Might Prove to Be a Buy

As traders wait on any progress in US tax reform, markets have been a little quiet. The Yen was an interesting trade given the backdrop of what’s going on. We put out a long forex signal and had a nice win yesterday.

That’s despite a bit of underlying weakness in the USD. With that in mind, I feel the area that we entered yesterday might very well be the best bet once again today.

I feel that around 112.50 seems to be the short-term bottom of this range. 112.46 is where we got some buying coming in and as you can see on the chart we had a candle with a long wick which indicates that there is buying in that area.

If the tax bill causes a bit of volatility in the short-term then I will be looking to buy on dips.