USD/JPY Price Forecast – US Dollar Awaits Direction Against Japanese Yen

The US dollar has gone back and forth during the trading session on Wednesday in early trading, as we continue to dance around the 50 day EMA. However, the FOMC will be making a decision that can drive this pair in one direction or the other.
Christopher Lewis
USD/JPY Price Forecast - US Dollar Awaits Direction Against Japanese Yen

The US dollar has filled the gap from the open on Monday, so it’s very likely that we will then go looking towards the ¥110 level, which would be an area that will attract a lot of attention because it is a large, round, psychologically significant figure, and this of course will determine where we go next. To the downside, the uptrend line near the ¥108.30 level will attract further attention as well, so at this point it’s very likely that we will see buyers in that area as well, not only because of the fact that it is the bottom of the overall uptrend channel, but it also features the 200 day EMA which attracts attention in and of itself.

USD/JPY Video 30.01.20

The all things being equal, it’s very likely that the market will stay within the channel, unless of course the market completely falls apart as far as risk is concerned. Ultimately, this is a market that is in an uptrend and in theory should stay there despite the fact that it has been very noisy and choppy all the way up. If we do break above the ¥110 level, it’s likely that the market could go down towards the ¥111 level. Furthermore, the market could then go to the ¥112.30 level. To the downside, if we were to break down it could open up a move back down towards the ¥105 level over the longer term as it is supported based upon the larger consolidation area that the market has been in for quite some time.

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