Yahoo Finance USD/JPY Price Forecast – US dollar continues to grind against Yen
The US dollar has rallied a bit during the trading session on Wednesday, as we continue to bounce around in a small consolidation area. The chart has seen a lot of consolidation in this area to the left, during the middle of December. At this point, we are going to struggle to go higher, and at this point it’s likely that sellers will continue to jump back into this market as the 200 day EMA will of course attract a lot of attention. With that in mind, I am a bit skittish about putting too much money to work. I think that we will continue to go back and forth in the foreseeable future, especially considering that we have the US/China trade talks going on.
USD/JPY Video 21.02.19
At this point, if we can break down below the 50 day EMA, pictured in red, we can go lower and reach towards the ¥110 level, and then perhaps the ¥109 level. The 61.8% Fibonacci retracement level has caused a significant amount of resistance just above, and I think it will continue to be so. Overall, this is a market that has made a massive “V shaped recovery”, which typically doesn’t have much in the way of follow-through. I do favor the downside, but at this point it’s going to need to prove itself to put a lot of money to work. I believe that this market will probably move with risk appetite, so keep an eye on the S&P 500 as well.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
