The US dollar has been very noisy against the Japanese yen during the day on Tuesday, as we have seen a significant amount of headline risk in this market. The ¥109.33 level looks to be very supportive, at least on the short-term. However, the wrong headlines coming out of either United States or China could send this market right back down in a bid for safety as money runs toward the Japanese yen. However, if we continue to get some type of risk appetite out there, this market will rally and perhaps try to go to the ¥110 level. A break above there opens up the door to the ¥110.50 level, an area that has attracted attention more than once.
In general, I suspect that this market is probably best left alone over the next couple of days, but there are short-term trades available for those who can sit and watch the charts. In general, I think that the market will continue to be one that scalpers will be attracted to, but you must keep an eye on the news more than anything else.
Longer-term, I think this market will recover but it’s going to take some time and more importantly, stronger pricing in stock markets around the world and leaders to be relatively quiet when it comes to the trade tensions going back and forth across the world.