USD/JPY Price Forecast – US Dollar Quiet Against Japanese YenThe US dollar did very little during the trading session on Monday, as traders came back from the weekend. Quite frankly, this looks as if it’s a market that doesn’t seem to want to go anywhere.
The US dollar has done very little during the trading session on Monday to kick off the week, as we said just below the 200-day EMA. The 200-day EMA of course is an area that will attract longer term traders and does tend to bring in a lot of pressure one way or the other. It currently offers a significant amount of resistance, and that resistance should direct where the market goes next. However, we have also seen a lot of pressure underneath that continues to push to the upside. In other words, I don’t know that the market is ready to go in one direction or the other.
USD/JPY Video 22.10.19
Keep in mind that the pair is highly sensitive to risk appetite and therefore it makes quite a bit of sense that we could see reaction to the S&P 500 and other such risk appetite barometers out there to determine where this pair goes. If we can break above the 200-day EMA, then we could go even higher, perhaps reaching towards the 61.8% Fibonacci retracement level. Once above there then I think the market is likely to go much higher, perhaps the ¥112.50 level. That being said, it is going to be very choppy to say the least, as the S&P 500 which I use as a secondary indicator is going through earnings season. There does seem to be significant support underneath though, so that should be paid attention to more than anything else right now. With that, I suspect this is probably one that you should avoid.
Please let us know what you think in the comments below