USD/JPY Price Forecast – US Dollar Gapped Lower After Tensions MountThe Japanese yen got a bit of a boost to kick off the week, as most yen related pairs gapped in favor of the Japanese currency. The USD/JPY of course was going to be no different, and therefore market participants found the US dollar on the back foot.
The US dollar gapped lower against the Japanese yen to kick off the week on Monday as tensions continue to bounce in the Middle East. That being said, the market is very likely to continue seeing a bit of noise, and at this point the question is whether or not the pair can recover? It certainly has tried to early in the day, as the gap was filled with relative ease. The next target is going to be the 200 day EMA which is at roughly ¥108.30, meaning that if we can break above there then it would be a significant recovery. However, if the market turns around a break down below the lows of the gap, then it’s very likely that the pair will roll over towards the ¥107 region.
USD/JPY Video 07.01.20
At this point, the market has probably started more of a downtrend than an uptrend, but the question isn’t so much as to whether or not it can fall from here, but whether or not it will be of any significance. At this point, the market is a bit negative but it is also stable so that is something worth paying attention to. If the market was to get a break above that 200 day EMA, then one would have to think that we would go back towards the highs at roughly ¥109.60. It’s a bit hard to imagine at the moment, but some type of good news could make that happen. Traders are going to be very cautious this week.
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