USD/JPY Price Forecast – US dollar rallies again

The US dollar has rallied again during the trading session on Thursday, crashing into the 50 day EMA and the ¥107 level. At this point, I suspect that the market is due for a pullback though as heading into the jobs number it’s very likely we will need to pullback and collect ourselves.
Christopher Lewis
USD/JPY daily chart, September 06, 2019

The US dollar has rallied significantly during the trading session on Thursday, crashing into the ¥107 level, an area that features not only previous resistance but also the 50 day EMA. Because of this, I believe that the market is going to continue to show signs of exhaustion in this area, and of course the jobs number has a major influence on what happens in this market. At this point, it’s very likely that we will see sellers sooner or later but if we get a very bullish run in the stock markets that could send the market towards the ¥108 level perhaps even higher.

USD/JPY Video 06.09.19

To the downside, the market has plenty of support at the ¥105 level, so I think that the market will continue to find plenty of buyers at that area but if we break down through there it’s very likely that it’s due to some type of financial disaster and would probably be a sign that the stock market continues to go lower. All things being equal, I would expect to see this market stay in this range but if we did break out to the upside I think the ¥108 level will cause issues, just as the 200 day EMA will above. Ultimately, this market continues to show signs of volatility, but the question now is whether or not we have found some type of bottoming pattern, or are we winding up for a move even lower? The next couple of days should tell us.

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