USD/JPY Price Forecast – US dollar rolls over against yen

The US dollar rallied a bit during the trading session initially during the day on Tuesday but found enough resistance above to roll over a bit and form a bit of a shooting star. This is a clear sign of exhaustion by the time the Americans came on board, and it’s likely that they are going to take advantage of it. After all, if the US dollar starts to soften that should help the stock markets and much of the like.

USD/JPY Video 13.02.19

Looking at this chart, I think that the ¥110 level of course is rather psychologically significant, and the fact that we broke above there so drastically during the trading session on Monday was of course a very strong sign. However, we are in an area that is massive noise, extending all the way to the ¥111.50 level. This was an area where we had seen a lot of selling pressure previously, so it would not surprise me at all to see this market roll over a bit. If we can wipe out the Monday candle stick, it would be a very negative sign and it could send this market back down towards the ¥108.50 level given enough time. Ultimately, this is a market that has continues to grind higher, in the face of a massive break down previously. In general, I think we are ready for some type of breakdown. However, if we broke above the top of the candle stick for the trading session on Tuesday, then I think we start to struggle with the idea of the 200 day EMA.

Please let us know what you think in the comments below