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.

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.