With that being said, I believe that the 150 yen level underneath offers a significant amount of support. And now that the 50 day EMA is approaching that level, I think that makes it even more interesting. It’s worth noting that we have not had a significant pullback anytime soon, and it just looks like we are just gradually chipping away at this resistance. I fully expect that one day will just explode to the upside.
And at that point in time, I would anticipate that the US dollar could go looking to the 100 to 55 yen level, which of course is a large round figure, and then possibly beyond that. The Federal Reserve may cut rates later this year, but at this point in time, a lot of traders are starting to dial back on expectations of cuts, at least in frequency and size. And that of course continues to keep the US dollar strong.
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