USD/JPY Price Forecast – US dollar finding support

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Updated: Feb 18, 2019, 16:34 UTC

The US dollar pulled back a little bit during the trading session on Monday, but then rallied to show signs of life again. The market has been very bullish as of late, but the last couple of days showed a bit of weakness. Now that we are starting to show signs of life, it looks likely that we continue to see buyers.

The US dollar pulled back a little bit to kick off the trading session on Monday, but then rallied a bit. It looks as if we are in a bit of a consolidation area right now, and I think this pair will be highly volatile and sensitive to the trade talks between the Americans and the Chinese. After all, the Yen is a proxy for Asia in general.

USD/JPY Video 19.02.19

Looking at this chart, you can see that the 200 day EMA is just above and near the ¥111 level. Because of this, I think that the upside is somewhat limited in the short term, as we are right in the middle of a cluster of trade from December, so I believe this is going to be very difficult to get past. This is an area that I think will cause a lot of noise so therefore short-term trading is probably about as good as it gets.

Just above I see even more resistance in the form of the ¥111.50 level, so I think that although it looks like we are ready to rally again, it’s probably more of a consolidation play than anything else. If we break down below the lows of the Friday session, that could unwind this pair down to the ¥109.50 level next. Overall, this is a pair that is going to be focusing on the short time more than anything else.

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.