FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
30,604,686Confirmed
954,140Deaths
22,256,889Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
USD/JPY Price Forecast - US Dollar Testing Major Resistance

The US dollar has rallied a bit during the trading session on Friday, reaching towards the ¥109.60 level, but there is a significant amount of resistance just above that will come into play. The ¥110 level is a major barrier, which obviously has been on the mind of traders for quite some time, as we continue to slam up into that area but cannot break out. Because of this, if we were to break above the ¥110 level it would be a major event that should send this market much higher. Ultimately though, it does not look like we are ready to do that and certainly will be able to do that after the massive turnaround that we have seen. Quite frankly, momentum doesn’t work like that in Forex very often.

USD/JPY Video 13.01.20

A pullback does make quite a bit of a sense, but I’m not necessarily saying that we can’t break out, it’s just that we won’t be doing that today. If we did though, we would probably go looking towards the ¥111 level next, which is the scene of a major gap, that extends all the way to the ¥112.50 level. To the downside, I would anticipate that the ¥108 level should be massive support, so at that point I would probably be a buyer. Keep in mind that this pair is highly sensitive to risk appetite so one should pay attention to how that is going around the world. Stock market correlation still holds, so that does help but at the same time it doesn’t look as if we have the necessary momentum to go higher quite yet.

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