Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
USD/JPY daily chart, January 09, 2019

The US dollar try to rally initially during the day on Tuesday but found enough resistance near the ¥109 level to turn somewhat negative, as it looks like we have a real fight on our hands. I think we may see a bit of sideways action in the short term, as the market awaits the results of the US/China trade talks. Because of this, it’s very likely that the market participants will continue to be jittery, and very sensitive to headlines risks.

USD/JPY Video 09.01.19

If we can break above the ¥109 level decidedly, then I think the next major barrier is going to be found near the ¥110 level, which I do not expect this market to be able to overcome. We have recently rolled over rather decidedly, and have even formed a “death cross”, which is when the 50 day EMA crosses below the 200 day EMA. At this point, I believe that the Japanese yen will continue to strengthen this year, and this is the beginning salvo in that move. I am more than willing to sell this market, but quite frankly I would love to have an opportunity to do it closer to the ¥110 level. However, if we break the ¥108 level at this point, I’d be forced to start selling there as well. I have a target of ¥106, followed by the ¥105 level after that. Expect volatility, but I certainly think negativity will be the longer-term move.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.