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

The US dollar tried to rally during the trading session on Wednesday, but as you can see continues to give back the gains as we break above the ¥111.50 level.
Christopher Lewis
USD/JPY daily chart, March 21, 2019

The US dollar initially tried to rally during the trading session on Wednesday but continues to find quite a bit of resistance above the ¥111.50 level, extending towards the ¥112 level above there. At that point, there is a lot of massive resistance so it’s going to be very difficult to break out at this point. While waiting for the Federal Reserve, we will have to see how things pan out from that announcement to see whether or not it gives us an opportunity to see volatility in this pair. A break above the ¥112 level obviously is very bullish.

USD/JPY Video 21.03.19

The alternate scenario of course is that we break down below the 200 day EMA, pictured in black, and the 50 day EMA, pictured in red. If we do that then I believe there would be enough technical damage in the market to see a break down towards the ¥110 level, possibly even the ¥108 level after that. This is a market that obviously been struggling for some time, so the one thing that we need to see is some type of impulsive candle stick. Until we get that, it’s essentially a back-and-forth choppy market that is only good for 15 to 20 pips at a time.

Overall, this is a market that I see as “dead money” at the moment, but I also believe that we will eventually get some type of explosive breakout that we can take advantage of. That will be shown by a long and impulsive candle stick on the daily chart that will be obvious.

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

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.