The US dollar pulled back a bit Monday to show signs of hesitation. That being said, the ¥138 level looks to be a bit supportive, and I think we will be paying close attention to it. If we break it down below there, then the ¥137 level gets targeted, followed by the ¥136 level.
The market has been in a strong uptrend for a while, so this pullback is probably necessary. That being said, it’s difficult to imagine that we are suddenly going to turn things around any time soon. Because of this, the market is likely to see a lot of noisy behavior, but I think eventually we will have buyers coming back into the picture to pick things up. The 50-day EMA is sitting just below the ¥134 level and rising, so I think it’s probably only a matter of time before we see dynamic support come back into the market based upon that as well.