The early hours of Monday saw very little activity in the forex market. This lack of movement can be attributed to Memorial Day in the United States and a bank holiday in the UK. These holidays led to a decrease in liquidity within the market, resulting in minimal trading activity.
Despite the quiet market conditions, a closer look at the chart reveals a bullish trend. This pattern suggests that the dollar is gaining strength, making it a favorable currency to consider for trading. It is recommended to view any potential dips in the dollar’s value as buying opportunities to acquire dollars at a lower price.
The 155 yen level serves as a significant support level due to being a large round number that many traders have utilized in the past. If a pullback were to occur, this level is likely to provide support. Additionally, the 50-day Exponential Moving Average (EMA) is approaching this area, further reinforcing its potential as a support level. On the upside, the target of 160 yen is viewed as a possible resistance level to reach in the future.
Despite the bullish outlook, it is important to note that the forex market can be volatile and unpredictable. As a result, trading in this market may be challenging and may involve fluctuations in prices. While the overall direction of the market appears to be upward, it is essential to exercise caution and employ risk management strategies when making trading decisions.
Institutional traders are likely to continue holding positions in the market, taking advantage of the prevailing trend. By earning swap payments daily, these traders can benefit from the market’s directional movement. This strategy of holding onto positions and earning swap payments can be a long-term approach for institutional traders, allowing them to capitalize on the market’s consistent direction.
Overall, the current forex market trends indicate a bullish outlook for the dollar against the yen. Traders should carefully analyze support and resistance levels, remain cautious of market volatility, and consider the strategies employed by institutional traders in navigating these market conditions.