USD/JPY Price Forecast – US Dollar Rallies In Risk On Move

The US dollar has rallied a bit during the trading session on Monday to kick off the week, as it has shown the continued upward proclivity that we have been seeing over the last several months.
Christopher Lewis
USD/JPY daily chart, November 26, 2019

The US dollar has rallied a bit during the trading session on Monday to kick off the week as we continue to see a lot of bullish pressure. At this point, the 61.8% Fibonacci retracement level just above is going to cause some issues, but at this point in time it’s very likely to get broken given enough of a catalyst. When we look at the USD/JPY pair, we often think of it as a risk barometer, which is exactly what it can be as the Japanese yen is considered to be the “safest currency” out there.

USD/JPY Video 26.11.19

The 61.8% Fibonacci retracement level currently sits at the ¥109.50 handle, which extends to the ¥110 level. At this point, the market looks very likely to try to get above there, but it may take several attempts. That’s okay, because quite frankly this would be a rather momentous move. At that point, the market is more than likely going to go looking towards the ¥111 level, and then eventually the ¥112.50 level. At this point, it does look as if we are going to continue towards that area, but we need some type of reason to celebrate. The most obvious one of course will be some type of positive news or perhaps even signing the “phase 1” part of the US/China trade deal. It should also be noted that this pair tends to move right along with the S&P 500, so if that breaks out it’s possible that could kick off the next move higher here as well. As far as selling is concerned, I’m not necessarily interested in doing so right now.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.