Christopher Lewis
Add to Bookmarks
USD/JPY daily chart, December 03, 2019

The US dollar has rallied a bit against the Japanese yen during the trading session early on Monday, as we are getting tantalizingly close to a breakout. If the pair can get above the ¥110 level, it’s very likely to continue going higher, as it will be a breach of major resistance. Ultimately, that could open up the door to the ¥112.50 level, which would be a move back to the 100% Fibonacci retracement level. Between here and there, the ¥111 level could cause some issues, so be aware that we may get a bit of a pullback from that level on the way higher.

USD/JPY Video 03.12.19

Underneath, we are getting very close to the idea of a so-called “golden cross” underneath, near the ¥108.50 level. That is when the 50 day EMA crosses above the 200 day EMA in a bullish sign of momentum. Ultimately, this last impulsive move has done a lot of damage to the sellers, and more importantly the overall resistance of the market. It is probably only a matter of time before we take off to the upside and good news coming out of the economic situation around the world certainly could be a major catalyst as we have a lot of risk appetite built into this currency pair. With that, I believe that buying dips will continue to work and it’s more than likely going to be a scenario where the 200 day EMA will start to offer a bit of a “floor” in the market once we get that cross, as is customary on longer-term charts. Look for a daily close above that crucial ¥110 level before buying, but at that point this thing should take off.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker