USD/JPY Price Forecast – US Dollar Pulls Back

The US dollar has pulled back a bit during the trading session on Monday to kick off the week, but also has seen buyers come back into push higher. We are basically hanging out in a couple of ranges, as we have tested the bottom of the short term range, which then is followed by a bigger range that we have been trading in for several weeks. It currently looks as if the market is probably going to make another move towards the ¥109.60 level, which causes resistance. However, even if we do break down from here, the market will probably go reaching towards the ¥108.30 level. That’s the bottom of a larger range that I believe continues to keep this market somewhat afloat.

USD/JPY Video 31.12.19

At this point, the 50 day EMA has crossed above the 200 day EMA, which is essentially is a “golden cross”, one of the more bullish longer term signs. At this point, the market is likely to continue to go higher from a longer-term standpoint, but that being said it’s very long-term as far as the idea of a move is concerned, and it’s still obvious that the ¥110 level is significant resistance, so if we can break above there it’s likely that the market continues to go much higher, perhaps reaching towards the ¥111 level. That’s an area where we have seen a gap in the past and after that I expect this market to go looking towards the ¥112.50 level. All things being equal, this is a market that I do expect to see go higher, but we need good news to push it.

Please let us know what you think in the comments below