USD/JPY Price Forecast – US dollar stalls against Japanese yenThe US dollar had rallied slightly during the trading session on Tuesday as we have reached relatively high levels against the Japanese yen. As we continue to bounce around just above the ¥108 level, it doesn’t take much imagination to think that perhaps traders are waiting for the Federal Reserve.
The US dollar has gone back and forth during the trading session on Tuesday in a relatively tight trading as we have a crucial interest rate announcement and perhaps more importantly statement coming out on Wednesday from the Federal Reserve. With this, it should greatly influence with this pair does next, and it’s likely that we will get extreme amounts of volatility once the announcement comes out. However, that’s not until later in the day, and therefore it might be a relatively quiet 24 hours until then.
USD/JPY Video 18.09.19
The 200 day EMA above should be significant resistance, so a break above there would of course be a very bullish sign for traders, and one would have to assume that there is a lot of momentum just waiting to jump into the market at that point. All things been equal though, a pullback could just as easily happen, reaching down towards the red 50 day EMA that is closer to the ¥107 level.
The market looks to be very quiet, and I anticipate that’s probably the main take away here is that you simply won’t get a lot of momentum unless of course there is some type a big “risk off” event coming out of the Middle East or some such place. Beyond that, it will probably be very quiet until we get the daily close. Once we get the daily close that should give us quite a bit more clarity as to where to go next.
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