The Yen has weakened in early trading against the U.S Dollar this morning, but it is approaching important resistance levels which have proven to be strong since March of this year. Traders with a speculative taste may be tempted to sell the U.S Dollar against the Yen.
Yen Weakening in Early Trading
The Yen has weakened early this morning as the U.S Dollar has been bought against the Japanese currency.Interestingly, the weakness in the Yen this morning has occurred as the Nikkei Index has gone into a cautious phase and equities have been sold.
Resistance Remains Strong for Yen
The Yen remains under the 114.00 level against the U.S Dollar and traders may view this weak terrain as important resistance. A look at the Yen’s mid-term chart shows it remains within a rather consolidated range.Gross Domestic Product numbers will come from Japan early on Wednesday and this could affect market sentiment.
A Taste for Speculation Among Yen Traders
The Yen’s recent trading has produced a well-practiced territory for traders. Asian investors have shown a great deal of risk appetite in equity Indexes, but the Yen has not sustained values above important resistance levels of 114.30 since March of this year.
Traders with a taste for speculation may see the current weakness being displayed in the Yen and believe it is time for yet another reversal, meaning they might sell the U.S Dollar against the Japanese currency.In the short term, we believe the Yen may be positive. Mid-term and Long-term we are unbiased.