USD/JPY Price Forecast – US dollar likely to consolidate

The US dollar pulled back a bit during the trading session on Thursday, but quite frankly has been very quiet. At this point, the market looks as if it is going to continue to dance around the 50 day EMA, which of course attracts a lot of attention. The previous couple of candles have been supportive in the totality, but this is also a market that has a lot of noise involved in it as well. Quite frankly, even if we were to break out to the upside the 200 day EMA above would continue to be thought of as the “ceiling” in the market. Just below there, the 50% Fibonacci retracement level sits, and of course it is also the scene of a major break down from July.

USD/JPY Video 27.09.19

The market has of course been all over the place, and it should also be noted that it is very sensitive to risk appetite around the world. The Japanese yen of course is considered to be a “safety currency”, and as a result it’s likely that we will continue quite a bit of back and forth based upon the latest headlines, but it should be noted that the GDP figures in the United States came out during the day pretty much in line with all expectations. That of course helps the idea of the stock markets rallying, which of course helps the idea of this pair rallying.

All that being said, the downside finds plenty support near the ¥106.70 level, which was the top of the previous consolidation area. There is a lot of noise down there, so if we do break down through there it is going to be very choppy and grind towards the ¥105 level.

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