USD/JPY Price Forecast – US dollar rallies to kick off week

The US dollar rallied a bit during the trading session on Friday, but gave back quite a bit of the gains. However, the Monday session has seen a return to that resiliency, perhaps reaching towards the ¥112 level. If we can break above there, and may be specifically the ¥112.50 level, then the market is free to go to the ¥113.50 level. Keep in mind that this market does tend to move right along with risk appetite, meaning that this pair will rally right along with the S&P 500. Obviously, that can work in both directions, but I do see quite a bit of support underneath based upon a handful of technical indicators.

USD/JPY Video 30.04.19

The 50 day EMA, pictured in red on the chart, sits just below the ¥111.50 level. Below there, we have the 200 day EMA, pictured in black. Both of those moving averages can have an effect on the market. Ultimately, if we break both of those levels then it’s very likely that we will try to go down to the ¥110 level which has a lot of psychological impact as it is a large, round, whole number.

A break down below there could change a lot of different things. However, this does look like a market that is extraordinarily resilient and therefore I do favor the upside but I recognize we need some type of momentum building to get things going. Once we do I expect a move to the ¥113.50 level to be somewhat quick.

Please let us know what you think in the comments below