USD/JPY Price Forecast – US dollar On Verge Of Breakout

The US dollar has been rallying against the Japanese yen repeatedly and has found itself knocking on the door of the 61.8% Fibonacci retracement level yet again. This is a market that can be used as a proxy for risk sentiment, which certainly has gotten a boost over the last 24 hours.
Christopher Lewis
USD/JPY daily chart, November 08, 2019

The US dollar initially fell against the Japanese yen during trading on Thursday, breaking below the 200 day EMA. However, later on we turned around to show signs of strength. This was in part helped by the Chinese stating that the Americans were willing to peel away some of the tariffs that have been levied against them in a sign of good faith. This has people thinking positive about the trade war situation, and that of course has people running from the Japanese yen in general. At this point, we are on the precipice of a pretty significant break out, so the question now remains whether or not we have enough momentum to actually pull it off. If we do, this could lead to a huge move in this pair.

USD/JPY Video 08.11.19

The ¥109.50 level features the 61.8% Fibonacci retracement level, an area that a lot of traders will pay attention to. However, it should be noted that this pair is currently sitting just above the 200 day EMA and the 50 day EMA has started to tilt much higher, showing that there is more momentum building up in the market. In fact, it looks a lot like a market that’s ready to form a “golden cross.” This of course is a longer-term “buy-and-hold” scenario where the 50 day EMA crosses above the 200 day EMA, suggesting a longer-term uptrend. At this point, the play has been the same in this pair for some time: by it when it dips.

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