USD/JPY Price Forecast – US Dollar Does Nothing Against Japanese Yen Into The Weekend

By:

Updated: Oct 25, 2019, 17:06 GMT+00:00

The US dollar continues to do very little against the Japanese yen as Friday was yet another quiet session. Ultimately, this is a market that I think will have to make some type of decision but there’s no catalyst out there to push the market in one direction or the other. In fact, that catalyst probably doesn’t come until Wednesday of next week when the Federal Reserve announces.

The US dollar has done very little during the trading session on Friday as we continue to grind sideways. You could make a little bit of an argument for a bullish flag forming underneath the 200 day EMA, but quite frankly this is probably more a function of the fact that the Federal Reserve is going to be announcing an interest rate cut and perhaps even more importantly have a statement coming out on Wednesday. Until then I would expect this market to be relatively quiet as it is so highly sensitive to risk appetite. Ultimately, this is a market that will probably have an explosive move on Wednesday but between now and then it would be asking a lot for some type of significant move.

USD/JPY Video 28.10.19

Looking at this chart, if we did break down below the ¥108 level, then it could drop this market down to the ¥107.50 level, which is the next minor support level. Just above, we have the 200-day EMA which is massive resistance from a technical analysis standpoint, so therefore it would be worth noting that a daily breakout above that level would in fact attract a lot of attention and perhaps new money into the market. Because of this, it’s possible that the market could continue to go much higher, but again we would need some type of catalyst to make that happen.

Please let us know what you think in the comments below

About the Author

Christopher Lewisauthor

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.