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Christopher Lewis
USD/JPY

The US dollar has rallied a bit against the Japanese yen during the trading session on Monday as we get back to work. The area just above continues to offer quite a bit of resistance, and therefore I think there are a lot of sellers out there above the ¥107.50 level to push this market back down. The 200 day EMA above offers significant resistance, as the long-term traders tend to pay quite a bit of attention to it. The 50 day EMA also could cause some issues in and of itself as we are at the ¥107.50 level.

That price has been a bit of a magnet for the market, and therefore it is not a huge surprise to see that we get back up there. However, you can see that there are several wicks above that level, and therefore I think we are likely to see the same selling pressure that we have for some time. Ultimately, I think this is a market that is killing time and waiting to find the next large move.

USD/JPY Video 14.07.20

Looking at this chart, the 50 day EMA and the 200 day EMA both drifting a little bit lower does suggest that we will see sellers jump in and when we go to the upside. With that, I do believe that we will probably go looking towards the ¥106 level. On the other hand, if the market were to rally to the upside and break above that 200 day EMA, it is likely that should go towards the ¥110 level.

For a look at all of today’s economic events, check out our economic calendar.

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