Advertisement
Advertisement

USD/JPY Price Forecast – US dollar pierces 50 day EMA

By:
Christopher Lewis
Updated: Jul 9, 2019, 15:59 UTC

The US dollar rallied a bit during the trading session early on Tuesday, breaking above the 50 day EMA. However, earlier in the session we have seen a lot of sellers jump back into the market, so we obviously have a bit of resistance coming into play.

USD/JPY daily chart, July 10, 2019

The US dollar rallied a bit during the trading session on Tuesday, breaking above the 50 day EMA and attempting a breakout. However, we also have the Federal Reserve chairman Jerome Powell speaking in front of Congress, and therefore we could see a lot of movement in the US dollar in general. Overall, this is a market that is trying to find some type of bottom at this point, but I think a pullback could be coming.

USD/JPY Video 10.07.19

Having said that, if we do break above the candle stick for the session, extensively the ¥109 level, it’s very likely that this pair will continue to reach towards the ¥109.60 level next. The alternate scenario of course is that we pull back and into the noise underneath, only to find value again and start rallying. I believe that Jerome Powell will do whatever it takes to lift stocks, and therefore this pair should get a bit of a boost due to stocks rallying from all of that easy money.

If he does something to disappoint the market though, this is a pair that will probably be sensitive to that and break down a bit. I wouldn’t expect anything major, but I would certainly recognize that there could be a bit of a pullback. If we do end up going below the ¥108 level, then I would be concerned, perhaps thinking that we could go down to the ¥107 level. All things being equal though I am still bullish.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement