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USD/JPY Price Forecast – US Dollar Rallies to Kickoff Week

By:
Christopher Lewis
Published: May 11, 2020, 13:50 UTC

The US dollar broke significantly higher during the trading session on Monday, clearing the ¥107 level. At this point, there is a lot of resistance just above, not the least of which will be the 50 day EMA.

USD/JPY

The US dollar broke higher during the trading session on Monday, clearing the ¥107 level. The 50 day EMA is sitting just above, and there is significant noise just in that area as well. Quite frankly, with all of this noise, it makes sense that we should fade signs of exhaustion. That being said, we may have to wait a day or two before we get that opportunity considering just how strong the candlestick looks at the moment. To the downside, the market could very well reach down to the ¥106 level, perhaps even down to the ¥105 level.

USD/JPY Video 12.05.20

Even if the market were to break a little bit higher, the ¥108 level looks to be massive, just as the 200 day EMA is closer to the ¥108.50 level. Ultimately, the market does look like it is ready to grind lower, and therefore I believe been waiting for signs of an opportunity to short this market, because quite frankly the breakdown that we had recently had of course suggests that we do have further downside. That being said, pay attention for signs of exhaustion that you can take advantage of as the trend is firmly ensconced in this market and we are approaching the 50 day EMA. Ultimately, this is a market that should continue to see a lot of noise, mainly because this is typically a very volatile pair, and of course if we get a lot of “risk off”, it is likely that we could fall from here as the Japanese yen is clearly the “safer currency.”

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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