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USD/JPY Price Forecast – US Dollar Finding Support Against Japanese Yen

The US dollar has pulled back slightly against the Japanese yen early on Friday, but then turned around to show signs of life again. Ultimately, this is a market that should continue to see buyers get involved, as we try to break out to the upside for a bigger move.
Christopher Lewis
USD/JPY Price Forecast - US Dollar Finding Support Against Japanese Yen

The US dollar has pulled back a bit against the Japanese yen earlier in the session, but then bounced enough to show signs of life. At this point it’s likely that the market will probably go looking towards the ¥110 level again, and as we get above there it’s likely that the market will probably go to the ¥111 level where there is a big gap. That gap will get filled, and then a certain amount of resistance will be entered into the market. Breaking above there probably opens up the door to the ¥112.50 level. That being said, it will be very easy to break out and I think that it’s likely that will pull back several times. This is a wrong time year to expect some type of explosive breakout, but if the Americans and the Chinese announce some clarity when it comes to the trade deal, then perhaps the markets will get a little bit more excited and run away from the Japanese yen which is considered to be a safety currency.

USD/JPY Video 23.12.19

The 50 day EMA has recently crossed above the 200 day EMA which is also the “golden cross.” This of course is a longer-term buy-and-hold signal for some systematic traders, so a certain amount of money will be flowing here anyway. The ¥108.50 level underneath is massive support, and therefore think it is as far as we go to the downside unless of course the entire US/China trade deal blows up.

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