USD/JPY Price Forecast – Pair Looks As If It Is Building SupportThe US dollar has pulled back a bit during the trading session on Friday, showing signs of confusion as we have also bounced. We are stuck between two major moving averages and have nowhere to be.
The US dollar has pulled back slightly against the Japanese yen to kick off the trading session on Friday, and at this point it looks as if we are essentially stuck between the 50 day EMA underneath and the 200 day EMA above. At this point, the market looks as if it is trying to build up enough inertia to make a move, and at this point it’s likely to go higher based upon the fact that we have formed a couple of hammers in a row. That being the case though, it’s likely that the area above will continue to cause some issues that, and quite frankly we need some good economic news to make it drive a bit higher.
USD/JPY Video 25.11.19
So far, the 50 day EMA underneath has offered a significant amount of support and continues to be important. At this point, the market is likely to reach towards the 61.8% Fibonacci retracement level, near the ¥109.50 level. That area extends to the ¥110 level, so once we get past that level, it’s likely that the market will go looking towards the 100% Fibonacci retracement level closer to the ¥112.50 level. At this point, the market is likely to be reacting to better economic conditions so this point it’s likely that the market will be in full overdrive.
To the downside, if we were to break down below the ¥108 level, it could open up the door to the ¥107 level underneath. This would obviously be due to some type of negative headline, but at this point I think it would be only a temporary dip.
Please let us know what you think in the comments below