USD/JPY Price Forecast – US Dollar Falls Against Japanese YenThe US dollar pulled back against the Japanese yen rather stringently during the trading session on Thursday, raking below the ¥109.50 level. However, we should have plenty of support underneath.
The US dollar has pulled back significantly during the trading session on Thursday, breaking below the ¥109.50 level. Ultimately, the market looks as if it is going to try to find buyers underneath, perhaps forming a bit of a bounce. After all, we have seen the 50 day EMA reaching towards that area so it’s very likely that we will end up finding a buying opportunity relatively soon. Ultimately, the market is likely to find value hunters sooner or later, but it had been overextended enough to keep this market from going much higher.
USD/JPY Video 24.01.20
The 50 day EMA of course is an important technical indicator, and it will almost certainly show some sign of resiliency, but ultimately this is a market that should continue to find itself reaching towards the gap above at the ¥111 level but it’s obviously going to take a significant amount of momentum to get there. Ultimately, look for some sign of a bounce on a short-term chart, especially near that 50 day EMA, and then take advantage of it.
The candlestick for the day of course is very negative, but really at this point it seems to be more or less a scenario where you should be paying attention to the massive move to the upside. As far as selling is concerned, we have a way to go before I would consider that, probably closer to the ¥108 level. Until we break down below there, I think that we still have more of an upward tilt, and it should be looked at as such. With this, on simply looking for “cheap dollars.”
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