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

The US dollar rolled over a bit during the trading session on Monday, as we rolled over towards the 50 EMA on the daily chart. It looks as if we have conflicting pressure in this market, sending it in both directions.
Christopher Lewis
USD/JPY daily chart, December 18, 2018

The US dollar initially tried to rally during the trading session on Monday, but then rolled over to reach towards the 50 day EMA. The market is currently in consolidation, as the symmetric triangle continues to be the main feature of this market. I think at this point, we will need to see some type of conclusion to this tension, but I think between now and the end of the year we may struggle to make a serious move. Ultimately, this is a market that is winding down for the end of the year, as we await to see what the Federal Reserve is going to do on Wednesday and of course the liquidity will drop off of a cliff.

USD/JPY Video 18.12.18

I think at this point, it’s very difficult to imagine putting a lot of money to work, but the ¥114.50 level above has been massive resistance, so I think it’s good to be difficult to break above there. I do think that if we can break down below the uptrend line, we will probably unwind towards the ¥111 level, perhaps the ¥110 level. Overall though, I think that as long as we are in this triangle, if we can sit at our computers and trade 50 minute chart, we may be able to go back and forth in a scalping type of environment. Beyond that, I would not expect too much unless of course the Federal Reserve surprises everyone on Wednesday with its tone. For what it’s worth, most of my Wall Street contacts suggest that the Japanese yen should strengthened into next year.

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.