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USD/JPY Price Forecast – US Dollar Continues To Climb

By:
Christopher Lewis
Updated: Dec 2, 2019, 17:18 UTC

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.

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.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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