Dollar Rebounds Against Yen as Trendline Support Takes Hold

The US dollar initially fell against the Japanese yen on August 25th, but later rebounded in favor of bulls.

The interest rate differential has been causing a headwind for the Japanese yen's recovery.

A longer-term trendline is providing support to the US dollar, with analyst Christopher Lewis stating that most interventions by the Bank of Japan are meant to slow down the market rather than turn it around.

According to Lewis, breaking above the 160 yen level would be significant resistance for the US dollar, but until then, he remains bullish on the market and recommends buying dips with proper position sizing.