The US dollar has run into a bit of trouble at the ¥109 level, as the market is likely to continue to see a lot of volatility. We are at the top of a short-term range, and as a result it is likely that the market will probably continue to bang around between the ¥109 level and the ¥107 level. If we can break above the ¥109.40 level, then it is likely that we will see an extension towards the ¥111 level. That is not my base case based upon the last couple of candlesticks, but it is a possibility, so it is worth paying attention to. The USD/JPY pair tends to have high correlation to the S&P 500, so pay attention to that.
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