USD/JPY Price Forecast – US Dollar Hanging Around 200 Day EMA

The US dollar has pulled back slightly against the Japanese yen during the trading session on Wednesday, reaching down towards the 200 day EMA. This is an area that obviously will attract a lot of attention, and therefore a longer-term traders are suddenly involved.
Christopher Lewis
USD/JPY daily chart, October 17, 2019

The US dollar has pulled back a little bit against the Japanese yen during trading on Wednesday, reaching towards the 200 day EMA which of course is a large technical indicator that a lot of traders will be paying attention to. We are banging up against pretty significant resistance in the form of the massive breakdown candle in July, so that is to be paid attention to. While it does look like we are trying to break higher, it’s going to be very difficult and choppy. Quite frankly we are going to need to see a little bit of help from other markets such as the S&P 500. Remember, first and foremost this is a market that is highly driven by risk appetite.

USD/JPY Video 17.10.19

The hammer from the Monday session should be thought of as a “floor, and therefore if we were to break down below the hammer, then the market continues to go lower, reaching towards the 50 day EMA. That of course is a technical indicator that will be paid attention to as well, so I think we are going to see one of two things rather soon: either a break higher and a massive trend change, or we are going to fall backwards and chop around between the two major moving averages. Ultimately, this is a market that will be influenced by other markets, so pay attention to the overall risk appetite of traders around the world, as it will probably lift this market if it looks good, or break it right back down if it looks poor.

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