USD/JPY Price Forecast – US dollar grinding against Japanese Yen

The US dollar continues to be rather noisy against the Japanese yen, as we are stuck between two major moving averages. Underneath, we have the red 50 day EMA, with the black 200 day EMA above. As we are dancing around in this general vicinity, it makes sense that we continue to see a lot of choppy and noisy action. This is because both shorter and longer term traders are trying to figure out where this market goes next. Ultimately, this will be driven on headline news more than anything else, so be aware that a sudden shift in attitude could come into play. Because of this position size should be relatively small, and certainly paid very close attention to. Stop losses will be crucial, and therefore is likely that extreme caution will be needed.

USD/JPY Video 01.10.19

To the downside, the ¥106.50 level could be a target if we do break down, just as the 200 day EMA, or roughly the ¥108.75 level, could be a nice target to the upside. Until we make an impulsive move though, one would have to think that short-term scalping in a back-and-forth manner continues to be the best way to trade this market. Ultimately, this is a market that has recently tested the 50% Fibonacci retracement level, which of course is a major area for market traders as well. With that in mind, it’s very likely that the downside is favored, but in the short term choppiness is probably more likely than not.

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