The US dollar rallied during the day on Tuesday, breaking above the 112.50 level against the Japanese yen. However, we did pullback a little bit in order to show signs of struggle. I believe that a pullback is what we need to see in order to continue going higher. The 110 level below should be supportive, as the market continues to show quite a bit of bullish pressure, but quite frankly is overbought at this point. I think it’s only a matter time before we do go higher so I’m looking for pullbacks and signs of support on shorter-term charts or even quite frankly a significant pullback in order to go long. I have no interest in shorting this market, and with this it’s only a matter of time before the buyers get involved as far as I can see. I would not be buying at this point, as the market is so overextended and it quite frankly would be chasing the trade if you got involved now.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.