#USD/JPY#

The US dollar initially tried to rally against the Japanese yen during trading on Monday but fell backwards to reach towards the 109 level.
This is an area that is going to be exceedingly difficult to navigate, because the 110 level above is very psychologically important. If we can break above the 110 level, that would open up the door to even higher levels, reaching towards the 111 level.
Looking at this chart, it makes quite a bit of sense that we could pull back to the 200 day EMA , and if we do see this play out, it could be more of a 'risk off' type of situation. After all, the Japanese yen is considered to be a safety currency, and of course people will buy into it if they are getting a bit concerned.
Well done to any traders who managed to take advantage of recent moves.

Going forward, short plays off 108.48 are possible, though buyers off the 200-day SMA
could be too much for sellers to contend with here. Therefore, a cautionary stance is necessary.