FXEMPIRE
All
Advertisement
Advertisement

USD/JPY Price Forecast – US Dollar Slams Into Major Level Again

The US dollar has reached towards the ¥110 level again, an area that has been important more than once. That being said, this area is continuing to show selling pressure, so breaking above to a fresh, new high would be crucial. At this point, the market could be free to go much higher.
Christopher Lewis
USD/JPY Price Forecast - US Dollar Slams Into Major Level Again

The US dollar has rallied a bit during the trading session on Wednesday to reach above the ¥110 level but continues to find sellers just above there. At this point, it’s not until we make a fresh, new high which is near the ¥110.40 level that I would be willing to put money into the market to the upside. More likely than not, there probably is a pushback coming as this level has been crucial for longer-term trades.

USD/JPY Video 13.02.20

Furthermore, if you look at longer-term charts, the ¥110 level is essentially “fair value” as it is the middle of the larger range. The ¥105 level underneath is massive support, while the ¥115 level above is massive resistance. By doing simple math, you can see that ¥110 level is a crucial fulcrum point. This explains why it is so difficult to get above it at the moment, as we are rising from such extreme lows. The next swing is going to be crucial though, because if it ends up being a lower high, then it could lead to something much bigger. However, we do make a “higher high, then I think we continue to see more or less a grind higher as it would be constructive as far as risk appetite is concerned, something that is a bit shaky at the moment. Ultimately, the next couple of days will be crucial in considering that we are at an area where I don’t see much of an edge one way or the other, it is probably advisable to simply observe.

Please let us know what you think in the comments below

Advertisement
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

Trade With A Regulated Broker

  • Your capital is at risk