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USD/JPY Price Forecast – US Dollar Continues To Show Resiliency

By:
Christopher Lewis
Updated: Jan 30, 2020, 17:09 UTC

The US dollar has pulled back a bit against the Japanese yen but has also bounced a bit to show signs of resiliency in this general vicinity. As we trade sideways underneath the 50 day EMA, it’s still a very murky situation.

USD/JPY Price Forecast - US Dollar Continues To Show Resiliency

The US dollar continues to show signs of life against the Japanese yen as although we did pullback during the trading session, we have also turned around. After all, the stock markets opened up rather brutally during the trading session, but it should be rather interesting to note that the Japanese yen has lost some of its strength against the greenback. Ultimately, it looks as if we are getting close to turning around again, but there is a major uptrend line underneath that would also offer support even if we do fall from here.

USD/JPY Video 31.01.20

Breaking above the 50 day EMA which is colored in red on the chart would be a sign that we are going back towards the ¥110 level, and therefore continuing the longer-term trend. Ultimately, if we can break above the ¥110 level, the market is likely to go looking towards the ¥111 level. All things being equal, this market continues to find reasons to go higher so with that being the case you can’t fight it. Granted, this pair does move with risk appetite but paying attention to the stock markets would be the first thing that you can do.

There are a lot of concerns about the coronavirus, but quite frankly there is the possibility that the US dollar strengthens due to the treasury markets anyway. In other words, there are a lot of crosscurrents here, but I think at this point as long as we can stay above the uptrend line and the 200 day EMA, we probably will continue to find reasons to go higher. The Japanese yen is typically a safety currency, but it has not been functioning as strongly as it typically does lately, so that something worth noting as well. Longer-term, I believe this pair still goes higher.

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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