Similar to a majority of the other global currencies, the yen (CME:JY) has been a bit of a choppy market over the past few months; yet the market has been trading in a relatively well-defined ascending trend channel over the past few weeks thus highlighting the bullish near-term momentum.
Expect this trend to persist unless price begins to break through key support on the downside. The lower end of the previously mentioned trend channel will come into play around 9815 today. With additional support just above this level at 9827, any corrective pullback into this range could provide a valid long entry point as additional buying pressure of support could be anticipated here.
Sustained weakness below here could warrant a bit less of an aggressive bullish position; however, the momentum remains positive above 9787. Local resistance could be anticipated around the 9881 and 9896 levels on the chart. Above here, the next area of major resistance on in the yen doesn’t appear to be present until the 9925 level. As long as the current ascending trend channel continues to govern price action in the yen, traders should look for valid opportunities to play the long side of the yen.
September ‘14 Japanese Yen 30-minute Bar Chart (e-Signal)