USD/JPY Price Forecast – dollar finding support against Japanese yen late Thursday

The US dollar has fallen a bit during the trading session on Thursday, reaching below the ¥107 level. However, we are starting to see a bit of support later on in the day as we are at the bottom of an obvious consolidation area, and just above the previous one.
Christopher Lewis
USD/JPY daily chart, October 04, 2019

The US dollar has initially tried to rally during the trading session on Thursday but ran into a bit of a headwind in the form of the 50 day EMA. We then turned around to reach below the ¥107 level, an area that extends down about 50 pips to the ¥106.50 level. As the market awaits the jobs number on Friday, it’s very likely that it will be relatively quiet going into that figure, and then very reactive. This pair tends to be highly sensitive to that economic report, and at this point the better the jobs number is, the better this pair will probably do.

USD/JPY Video 04.10.19

A break above and daily close above the 50 day EMA has the market reaching towards the ¥108.50 level, an area that features the 200 day EMA as well. Ultimately, this is a market that continues to see a lot of choppiness and that is probably going to be the way forward. Beyond that, the longer-term trend is most certainly to the downside so it’s likely that we will eventually go looking to test the ¥105 level, but obviously we have some support to chew through in the meantime. A short-term bounce, signs of exhaustion, and perhaps a catalyst to break down is the most likely of scenarios for my experience trading this currency pair. With that, expect volatility but eventually we should get some type of resolution to the choppy and sideways trade conditions.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.