USD/JPY Price Forecast – US Dollar Searching For Support

The US dollar has broken down significantly during the trading session on Tuesday again, as we reached towards the ¥108.50 level, and the 200 day EMA. This is an area that has offered support several times in the past so the most likely scenario is that we would get a bit of a bounce. If we do get that bounce, then it is probably going to go looking towards the ¥109.50 level. That being said, it won’t necessarily be easy to deal with, and I think at this point it’s very likely that we will see players come in and try to support this market. However, if we do not then the market could find itself reaching towards the ¥107 level over the next several trading sessions.

USD/JPY Video 02.01.20

Keep in mind that there is a bit of “end of the year” bookkeeping going on as well, so you can only read so much into this as far as the short term is concerned. With that being the case, I like the idea of playing it for a bounce but probably later this week, not necessarily the first chance I get. Ranges last until they don’t, and while that seems a bit curt, the reality is that it’s very true. Ultimately, this is a market that has a serious decision relatively soon, so pay attention over the next couple of days, because you will have a bit of time to make this decision. With that being said, be cautious but pay attention as we are about to get a nice signal.

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