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

The US dollar has initially fallen during the trading session on Wednesday, only to turn around to rally against the Japanese yen. Quite frankly, there’s a lot of noise out there involving the US/China trade situation, and perhaps a little bit of hope as enter the market based upon a potential partial deal.
Christopher Lewis
USD/JPY daily chart, October 10, 2019

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.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US