USD/JPY Price Forecast – US Dollar Sits On 50 Day Ema

The US dollar has gone back and forth against the Japanese yen, essentially doing nothing on Friday. We are sitting at the 50 day EMA which is an area that attracts a lot of attention, as buyers are attracted to this level. If we can break above the top of the candlestick, we will then more than likely go looking towards the 200 day EMA above which is significant in its importance. That being said, I don’t think that the market can break above that level right away, so I would look at this as a short-term opportunity. However, the market was the break above the ¥109.50 level, then the market is ready to go much higher for a longer-term move. To the downside, if we break down below the 50 day EMA then we could go down to the ¥107 level.

USD/JPY Video 04.11.19

Keep in mind that this pair is going to be very sensitive to the US/China trade headlines, which at least seem slightly better as of late. That should continue to help, but at this point it’s very likely that the market will be choppy overall, so keep in mind that position sizing will be crucial. The market should continue to be erratic so it’s probably best to trade in small position size, but then again that could be said about much of the currency markets as of late.

Please let us know what you think in the comments below