USD/JPY Price Forecast – US Dollar Continues To Climb

The US dollar has continued to grind against the Japanese yen during the trading session on Monday, as we are getting tantalizingly close to a major breakout.
Christopher Lewis
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.

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