USD/JPY Price Forecast – US Dollar Bounces

The US dollar initially pulled back against the Japanese yen but then turned around to show signs of support. At this point, the market then looks as if we are trying to continue the move higher, but obviously there is a lot of new slow out there that continues to throw risk appetite around.
Christopher Lewis
USD/JPY daily chart, November 21, 2019

The US dollar has pulled back a bit during the trading session initially on Wednesday but found support at the 50 day EMA again to turn things around and show signs of life. The fact that we have rallied the way we have suggests that we are going to continue to grind higher. The market continues to struggle with the 61.8% Fibonacci retracement level above, and if we can break above there it’s likely that the market could go higher. That would be confirmed by moving above the ¥110 level, and as a result the market breaking above that level would be a huge victory. At that point, it will more than likely go looking towards the 100% Fibonacci retracement level, which is closer to the ¥112.50 level.

USD/JPY Video 21.11.19

To the downside, the market more than likely has plenty of support at the ¥108 level, and then underneath there at the ¥107 level. Keep in mind that this pair is very risk sensitive, and of course we have a whole plethora at headlines out there that could move this market back and forth. At this point, the market looks likely to continue to be very noisy, so short-term trading is probably the best way to trade the USD/JPY pair, or any other pair that features the Japanese yen for that matter. Ultimately, pullbacks look as buying opportunities, but at this point it’s obvious that the market is going to be short-term focused more than anything else.

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