USD/JPY Price Forecast – US dollar drifts slightly lower on Friday

The US dollar has drifted a little bit lower during the trading session on Friday, as we dance around the 50 day EMA. The overall attitude of the market has been positive for some time, and I think that the uptrend line underneath is going to continue to go into the market and offer buying pressure. I also believe that the ¥112 level underneath is massive support. Beyond that, we have the 200 day EMA under there as well, so I think it’s only a matter of time before buyers come back in. If we were to break down below all of that, that would obviously be a very negative turn of events and probably be driven by some type of negative macro event.

USD/JPY Video 26.11.18

If you look at the recent highs, you can see that we are struggling just a bit too make the same highs, but the ¥114.50 level begins a massive resistance, so doesn’t surprise me that we had a pull back a bit to start buying. If we can break above the ¥115 level, then the market is free to go more of a “buy-and-hold” situation, but I think we’re going to need to see a lot of good news coming out of the financial markets to send the market higher. I think the most likely attitude of this market is going to be a “buy on the dips” attitude, but it will be short-term back and forth trading overall.