USD/JPY Price Forecast – the US dollar finds support against yen

The US dollar has pulled back against the Japanese yen, but then turned around to form a bit of a hammer. At this point, the market looks likely that it is going to continue to find buyers now that the jobs number is over with.
Christopher Lewis
USD/JPY daily chart, October 07, 2019

The US dollar has pulled back a bit during the trading session on Friday but has found support at the previous downtrend line that should now offer support. As it has, the market looks likely that the ¥107 level will offer plenty of buying pressure, and therefore a break above the top of the daily candle stick on Friday should send this market to the upside, perhaps reaching towards the ¥108 level, continuing the overall consolidation. Beyond that, the market is also finding support at the 38.2% Fibonacci retracement level and therefore could attract a certain amount of attention.

USD/JPY Video 07.10.19

The 50 day EMA is above, starting to curl lower, and suggesting resistance. If the market can break above there, it’s likely that the market will then go looking towards the recent highs. However, if we were to break down below the duel hammers, the market more than likely would go looking towards the ¥105 level. At this point, this would take some type of negative news, which of course could come out in the form of the US/China trade talks. However, there is a bit of hope out there now that the jobs numbers out of the way and the Chinese are coming to Washington DC to start talking. At this point, there is the likelihood of reentering the consolidation area, but at this point it’s likely that the action will be choppy to say the least, but it looks as if it has a little bit of positive momentum coming into the marketplace.

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