(MENAFN- Daily Forex)

• The US dollar has fallen pretty significantly during the trading session on Wednesday against the Japanese yen, but we are still extraordinarily elevated.
• With that being the case, I'm still looking for a little bit of a bounce that I can take advantage of, and we are starting to get it late in the session.
• The question is, will it be enough to really start buying into? I don't know.

I think maybe we have a little further to go. I will let the market just tell me what it's going to do. But right now, I know that I don't want to get short of this pair. The 150 yen level would be interesting. The 149 yen level would be even more interesting. If we just bounce from here, then we may find ourselves consolidating a bit between the 151 yen level and the 153 yen level, trying to get our footing on this breakout.

Major Rectangle Below, and Possible Triangle

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We previously had a major rectangle that we gapped out of whether or not we fill that gap remains to be seen. Typically, you do. So that is something that you want to pay attention to. But I also recognize that you can make an argument that we just broke out of a triangle and that could signify a massive move in this pair. In fact, you could be looking at somewhere in the neighborhood of a move to about 162 yen. That would be basically back where we fell in July of 2024. So, we'll just have to wait and see.

EURUSD Chart by TradingView

Regardless, I do think that this is a buy on the dip market, and I do recognize that you get paid to sit at the end of the day with the swap interest rate differential. And at this point, I'm just looking for a nice entry, and I will get long again.

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