US dollar reaching towards highs again
The US dollar has reached towards the vital ¥113 level again during the day in a parabolic move. This shows just how strong the greenback is and of course how much the interest rate differential is starting to come into play.
The US dollar has gone parabolic against the Japanese yen in trading on Thursday, breaking above the ¥113 level. By doing so, the market looks ready to go much higher, and I think that we will probably go looking towards the ¥114.50 level given enough time. At this point, I believe that short-term pullbacks continue to be the way to go for buying opportunities, and I don’t have any interest in shorting this pair. I don’t know that we can break out above this pair in the short term, but longer-term it seems a bit like a foregone conclusion. It is because of this that I look at short-term pullbacks as buying opportunities but I would only piecemeal the position in.
