USD/JPY Price Forecast – Dollar Continues To Grind Against Japanese YenThe US dollar rose slightly against the Japanese yen early during trading on Tuesday as we continue to grind to the upside. That being said, we have not broken out either and there is a ton of resistance just above.
The US dollar has rallied slightly against the Japanese yen during trading on Tuesday, reaching towards the ¥110 level again. However, we can’t get above there and as a result it should be noted that this level has held up quite nicely. If that’s going to be the case, then it makes sense that it’s only a matter of time before we roll over yet again. Underneath though, there is significant support at the ¥108 level, so we may be settling into a trading range going into the holidays. Remember, this pair is highly sensitive to risk appetite so that will have to be paid attention to as well.
USD/JPY Video 18.12.19
We have recently had the “golden cross”, as the 50 day EMA has broken above the 200 day EMA. This is right at the bottom of this little range that I have pointed out, so it’s given another reason to think that we are going to go higher. The fact that we have seen the Americans and the Chinese at least agreed in principle on the “Phase 1 deal” should be bullish for this pair as the Japanese yen is considered to be a major safety currency. The S&P 500 continues to grind much higher as well, although it is a bit extended so that may cause some issues. All things being equal this is a market that probably needs to pullback a bit, at least to build up enough momentum to finally make that break out and a move much higher. Until that happens, more of the same would be expected.
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