USD/JPY Price Forecast – US Dollar Continues To Be Sluggish

The US dollar initially tried to rally during the trading session on Monday but gave back the gains in order to have a relatively flat session. Ultimately, this is a market that has shown itself to be very quiet and that makes quite a bit of sense considering that the holidays are upon us. That will absolutely crush volume, and therefore most of the people trading currency at this point will be people who are forced to via international transactions. We continue to look at the technical analysis anyway though, and with the 61.8% Fibonacci retracement level sitting in this general vicinity it makes quite a bit of sense that the market will continue to pay quite a bit of attention to this price level. The 50 day EMA has crossed above the 200 day EMA recently forming the “golden cross”, which of course is bullish overall.

USD/JPY Video 24.12.19

The USD/JPY pair is very sensitive to the risk appetite of traders around the world, and with the United States and China both starting to cool off the trade concerns, it makes sense that we will eventually get some type of break out. In the short term though, it’s very difficult to imagine that we will have a lot in the way of momentum, and therefore a short-term pullback probably makes sense. I believe that the “floor” in the market is close to the ¥108.50 level, and as long as we can stay above there the buyers still remain in control, albeit slightly.

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