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USD/JPY Price Forecast – US dollar continues to grind higher against Japanese yen

By:
Christopher Lewis
Updated: Feb 28, 2019, 17:37 UTC

The US dollar has pulled back slightly initially during the trading session on Thursday, only to turn around and slam into the top of the recent consolidation yet again. With this, we are most certainly pressing major resistance, and the correlation between this pair and certain markets is striking currently.

USD/JPY daily chart, March 01, 2019

The US dollar has initially pulled back during the trading session on Thursday but has turned around to break above the ¥111 level slightly. There is a massive amount of resistance above, and I think that should be something that you pay attention to. The ¥111.50 level is a massive barrier. Beyond that, it appears that the pair is likely to move lockstep with the S&P 500 still, which seems to be running into a significant amount of resistance.

USD/JPY Video 01.03.19

At this point, it looks as if the 50 day EMA just below is offering support, just as the ¥110 level will be. Ultimately, if we break down below there we will then more than likely unwind down to the ¥108.50 level. Ultimately, we are consolidating and that should continue to be the main take away from this pair. If you are short-term trader, back-and-forth trading should continue to be attractive, but at this point it looks as if both the S&P 500 and the USD/JPY pair have run out of momentum, and it seems like we are going to continue to struggle to make any headway.

At this point, I think you can expect to see a lot of back-and-forth and noisy trading, and quite frankly unless you are short-term trader probably don’t have much to do here. If we were to break above the ¥112 level, then the longer-term uptrend would be confirmed, but right now it seems like the market simply can’t go anywhere.

Please let us know what you think in the comments below

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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