USD/JPY Price Forecast – US Dollar Continues to Hang Around 105 JPY

The US dollar has pulled back just a bit during the trading session on Thursday as the 50 day EMA continues to attract a lot of attention. The ¥105 level is of course a large, round, psychologically significant number, and the fact that we continue to hang out in this area is a relatively strong sign. The Monday candlestick was potentially a trend changing type of situation, but at this point we are simply trying to figure out whether or not it is a true move. One thing is for sure, we have seen a lot of resistance between the 50 day EMA and the 200 day EMA, which is what we are challenging right now.

USD/JPY Video 13.11.20

If we do break back down below the Tuesday candlestick, then I think we probably reach towards the ¥104 level. While that would be with the overall trend, the reality is that the massive candlestick from Monday is something that a lot of people will be paying attention to. At this point, I think that you are best served waiting to see whether or not this market continues to see momentum. At this point time, I think we are at a major decision point, and therefore it is best to see whether we can break that Tuesday candlestick, or if we continue the next surge higher. All things being equal, this is a market that I think will reflect risk appetite which is all over the place right now so this is why I would not be quick to jump into any particular trade right now.

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