(MENAFN- Daily Forex)

• The US dollar broke down significantly against the Japanese yen during trading on Friday, as the ¥153 level has offered a significant amount of resistance, and perhaps gravity came back into the picture. That being said, we also have a little bit of an exacerbation of trade tensions between the United States and the Chinese, and therefore a little bit of a“risk off move” made sense.
• In other words, people started running to the safety of the Japanese yen, but I also would argue that the market was overdone to begin with, and we were heading into the weekend.

Technical Analysis

The technical analysis for this pair is obviously very bullish, as we gapped to the upside and break the ¥149 level, only to turn around, pulled back to show signs of support, only to turn around and show signs of strength as we just took off to the upside. Ultimately, the market is likely to continue to see a lot of volatility, but I think at this point in time, we pull back it's going to end up being a buying opportunity once everything settles down. I've been saying all week how we need to find some type of reason to start buying again, and the easiest way to get that reason is to see a lower price.

The ¥149 level underneath could be important again, and I'd be very interested in seeing this pair pull back to that level so that we can start buying. The size of the candlestick is rather large and had wiped out the previous 2 trading sessions. Ultimately, this is a market that I am looking for an opportunity to start buying, but at this point in time the lesson you wanted to do was to“chase the trade.” By doing that, it opens up the possibility of taking massive losses, and I have been saying for days that a huge stop loss would be necessary if you try to get involved. We got a little bit more in the way of value, but not enough to start putting money to work quite yet.

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