USD/JPY Price Forecast – US dollar stalls against Japanese yen going into the weekend

The US dollar went back and forth against the Japanese yen as momentum is starting to run out against the Japanese yen. All things being equal this is a market that has broken above the ¥180 level which of course is a technically important event, but we also have the 200 day EMA above near the ¥109 level that will come into play as resistance as well. When you look at this chart it’s easy to see that it is a bit parabolic so a pullback is probably necessary. The question now is whether or not it is a short-term pullback and a bounce, or is it going to be a continuation of the longer-term trend.

USD/JPY Video 16.09.19

To the downside, the 50 day EMA which is painted in red looks to be an area that could offer support. The ¥107 level was the previous resistance, so I would suspect that offer support as well. Quite often this pair tends to move back and forth with the S&P 500 so simply watch that market as a secondary indicator. It is trying to break out to the upside and if it does, that should continue to drive money into this pair to the upside as the Japanese yen is considered to be the “ultimate safety currency.” All things been equal though, the market will continue to be more choppy than anything else as per usual. If we can break above the black 200 day EMA, then that could signify a longer-term trend change.

Please let us know what you think in the comments below