USD/JPY Price Forecast – US dollar continues to churn against Yen

If you believe in rumors, the US/China trade situation should be the way you like to trade. Quite frankly, they have suggested that the Chinese were willing to take a partial deal, perhaps buying more soybeans. That being said, there’s been more of a “risk on feel” to the earlier hours of trading on Wednesday, but American negotiators have already suggested that this isn’t going to happen. Certainly Donald Trump has no interest in signing that partial deal, as he wants to see comprehensive deals being done. This won’t happen this week, so it’s only a matter of time before this market fails.

USD/JPY Video 10.10.19

The ¥107 level continues to be important in and of itself, but at this point the market has tested the 50 day EMA during the trading session, an area that has caused resistance of the last couple of days. If the market were to break above the ¥107.50 level, then the market could go looking towards the ¥108.50 level. That is an area that features the 200 day EMA and therefore it’s likely that as we see signs of exhaustion as we approach it. That being said though, we are more likely to see sellers continue to fade this market as there are plenty of “risk off” potential headlines out there just waiting to happen. Ultimately, once this week ends, then people will be paying attention to earnings season in the United States.

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