USD/JPY Price Forecast – US dollar continues to go sidewaysThe US dollar went back and forth during the trading session on Thursday as we continue to hang about relatively important consolidation. There are several technical signals firing off in the same area, so this of course is going to continue to be very interesting to watch.
The US dollar has shown a lot of proclivity to go sideways in this area, as we are hanging about the 61.8% Fibonacci retracement level. That of course will attract a lot of attention by itself but keeping that in mind, we also have the 200 day EMA sitting just above. That’s an area that has been important from a longer-term standpoint for most traders, and it is now offering resistance. On the other hand, we also have the 50 day EMA underneath that is turning up, which is a bullish sign.
USD/JPY Video 22.02.19
Looking at this chart, I suspect that the cluster back in December in this area should continue to cause a lot of reaction, so therefore I’m not sure that this market makes a huge move anytime soon. However, if we can break out of the rectangle that I have drawn on the chart, it’s obvious that we could make a move. I suspect that there is probably more likelihood of a downward move than up, but at this point it doesn’t look like the market is ready to go anywhere soon. Ultimately, if we do break down below the ¥110 level, the market probably goes looking towards the 100 a ¥0.50 level in a continuation of the previous move.
Just above, the ¥112 level is a major resistance barrier as well, so really at this point I think it’s very difficult to imagine that we can go to the upside for any longer-term move.
Please let us know what you think in the comments below