USD/JPY Price Forecast – US dollar gain slightly against Japanese yen

The US dollar initially tried to rally during the day on Tuesday but gave back quite a bit of the gains as we continue to see the ¥110 level above offer significant resistance. I think that the 50 day EMA and the 61.8% Fibonacci retracement level in that area will also cause quite a bit of bearish pressure so I do think that rallies are to be sold. We should go looking towards the ¥109 level, and then eventually the ¥108 level which was so massive in its support. I think that it will be supportive yet again, so I don’t think that it’s going to see a major break down in the short term. However, eventually we should go down below the ¥108 level, which would send this market much lower, with the initial target being the 170 in level, and then eventually the ¥105 level.

USD/JPY Video 30.01.19

If we do rally, I think we will continue to see opportunities to short this market near the ¥110 level, and that the area simply will not give way anytime soon. If we do break above there, it would take a significant amount of momentum, and an obvious switch in the overall attitude of markets. The US dollar continues to lose ground against many of the world’s currencies, so it makes sense that we would lose some ground here as well. After all, it isn’t that it is a “risk on” move that is fueling that the client of the Dollar, it’s an attitude adjustment by the Federal Reserve.