USD/JPY Price Forecast – US dollar falls against yen in anticipation of Humphrey Hawkins

The US dollar has fallen a bit against the Japanese yen during the trading session on Tuesday as we await congressional testimony by Jerome Powell, for the semiannual Humphrey Hawkins testimony. The Federal Reserve has done a major pipit with its attitude as of late, and that of course will be paid attention to during the next couple of days, as it could weigh upon the US dollar if it is reiterated to be very soft.

USD/JPY Video 27.02.19

Looking at the chart, the ¥111.50 level above has been significantly resistive, so therefore it’s not a surprise to see that we are trying to roll over. The 200 day EMA is also starting offer resistance, but we haven’t necessarily broken down quite yet. In order to have a bit of a break down and get excited about shorting, I need to see this market break down below the ¥110 level. If that happens, it’s very likely that the market will go hunting for the ¥108.50 level.

Pay attention to the stock markets, sometimes they can pull this pair higher, especially the S&P 500. It’s worth pointing out that the S&P 500 closed very poorly on Monday and looks as if it’s running into major resistance. Because of that, we may be looking at a risk appetite move coming, and it’s negative form. If that does in fact end up being the case, the Japanese yen typically will strengthen.

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