USD/JPY Price Forecast – US dollar runs into resistance against Japanese yen

The US dollar has pulled back a bit during early trading in Thursday as the 50% Fibonacci retracement level has offered a little bit of resistance against the Japanese yen. The market has been all over the place after the Fed cut, and of course the massive amount of potential geopolitical issues out there.
Christopher Lewis
USD/JPY daily chart, September 20, 2019

The US dollar has pulled back a bit against the Japanese yen during trading on Thursday as the 50% Fibonacci retracement level has made its presence known. That being said though, it’s very likely that the area that could cause quite a bit of issues not only due to the fact that the 50% Fibonacci retracement level is right here, but also the fact that the 200 day EMA is just above, and currently at the top of the major breakdown candle that had started the move lower to begin with. In other words, this is exactly where the pair faces its biggest challenge.

USD/JPY Video 20.09.19

Keep in mind that this pair is highly sensitive to risk appetite, and therefore should be paid attention to. If the stock markets are generally positive, quite often the Japanese yen get sold off, which of course push as this pair to the upside. Obviously though, the exact opposite can and will be true at times, so pay attention to that as well. There are also plenty of geopolitical issues out there that will continue to make this a bit of a difficult move to the upside but if we were to close above the 200 day EMA on the daily chart, that is in and of itself technically a change of trend and could send this market much higher, with the initial target being the ¥110 level, followed by ¥112.

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