US Dollar Struggling With 50 Day EMA Against Yen

The US dollar has gone back and forth during the trading session on Tuesday as we reached the 50 day EMA but pulled back just a bit. That being said, the market looks as if it is trying to figure out where to go next, as the technical resistance of the 50 day EMA seems to have caused a little bit of a problem. That being said, the market will be waiting for the Federal Reserve statement and press conference on Wednesday to make the bigger move, as traders are trying to figure out whether or not the Federal Reserve is going to be more dovish or hawkish than thought by the market at the moment. All things being equal, it will come down to market perception of what Jerome Powell has to say.

USD/JPY Video 26.01.22

At this point in time, it is probably worth noting that the market will more than likely be noisy, but at this point in time it does make a certain amount of sense that the longer-term uptrend may come back into the picture. Obviously, the next 24 hours are going to be noisy and a bit of a mess, so you do have to be a bit cautious. With that, I anticipate more sideways action than anything else over the next 24 hours, followed by a lot of volatility as markets try to react to what the Federal Reserve may or may not do. This is going to be about nuance, which almost always sets up for problems with trading the markets. Be cautious, and in fact I would urge you to perhaps wait until we get the Wednesday close to start putting money to work.

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