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

The US dollar rallied against the Japanese yen in a bit of a “risk on” move, as we have seen stock markets recover after the Americans softened their stance against the Chinese over the weekend. That being said though, this is a market that clearly can be influenced by outside measures.
Christopher Lewis
USD/JPY daily chart, August 20, 2019

The US dollar has rallied a bit against the Japanese yen during the trading session on Monday, but then is starting to face a bit of resistance in the form of the ¥107 level. I think at this point the market is going to continue to chop around and be noisy, but more than likely what we are about to see is an attempt to rally right along with the stock market but the 50 day EMA will start to come into play which is in red on the chart. If we do break through the 50 day EMA then the market will probably start looking towards the ¥108 level.

USD/JPY Video 20.08.19

Keep in mind that this pair is highly sensitive to risk appetite, and therefore it’s likely that we will continue to see this move right along with the S&P 500 as per usual. That being the case, if we see some type of selling pressure in the S&P 500 or perhaps other indices, that may send this market right back down. We are still very much in a downtrend so I’m looking to sell this pair after some type of rally that shows signs of exhaustion. At this point, we would probably see the market try to reach the ¥105 level underneath yet again as it has shown such massive support. That being said, the market is going to move right along with that risk appetite so pay attention to major indices around the world to give you a bit of a secondary indicator.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US