USD/JPY Price Forecast – US Dollar Pierces Big Figure Than Pulls Back

The US dollar has run into a bit of trouble at the ¥109 level, as the market is likely to continue to see a lot of volatility. We are at the top of a short-term range, and as a result it is likely that the market will probably continue to bang around between the ¥109 level and the ¥107 level. If we can break above the ¥109.40 level, then it is likely that we will see an extension towards the ¥111 level. That is not my base case based upon the last couple of candlesticks, but it is a possibility, so it is worth paying attention to. The USD/JPY pair tends to have high correlation to the S&P 500, so pay attention to that.

USD/JPY Video 05.06.20

To the downside, the 200 day EMA and the 50 day EMA are both below, so that could cause some noise. However, it will be interesting to see whether or not they can hold. I think that this market is likely going to go back to being very choppy, because there are so many questions that remain to be answered when it comes to the global economy and of course the US economy to say the very least. Ultimately, this is a market that is likely to see a lot of volatility, but that is probably something that you can see and just about any currency pair that you look at. With that being the case, it is highly likely that a pullback happens more than anything else.

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