USD/JPY Price Forecast – US dollar drift lower

The US dollar drifted a little bit lower during the trading session against the Japanese yen on Friday, as the market looks a bit exhausted at this point. Beyond that though, a parabolic market does need to pull back.
Christopher Lewis
USD/JPY daily chart, September 23, 2019

The US dollar went back and forth with a slightly negative twist on Friday to close out the week. The market continues to see a lot of noise, and the 50% Fibonacci retracement level has caused a bit of selling pressure. The 200 day EMA is just above and painted in black, suggesting that it will continue to bring bearish pressure again. Beyond that, the market will be very sensitive to the risk appetite around the world, as the Japanese yen is without a doubt one of the favored safety currencies. At this point, this is a market that should continue to chop back and forth but I do think it gives a certain amount of negative opportunity.

USD/JPY Video 23.09.19

While the US dollar has been favored against many other currencies, it does work in the opposite direction here and you should also pay attention to the S&P 500 and how it behaves. If it pulls back a bit, that could be very negative for this pair. However, if we were to break out in the S&P 500, coinciding with the USD/JPY pair closing above the 200 day EMA, that would be a nice buying opportunity in the market should continue to go much higher. That being said, to the downside the ¥107 level is the target for sellers and will offer a significant amount of support. If we were to break down below there, then the market will almost certainly go looking towards the ¥105 level next, which is the beginning of significant support based upon the most previous bounce.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US