USD/JPY Weekly Price Forecast – US Dollar Rockets Higher Against Japanese Yen During The WeekThe US dollar broke above the ¥110 level during the week but continues to struggle above there. That being said though, this is a market that looks as if it is ready to go higher over the longer term, as we are now above the 200 week EMA.
The US dollar has rallied against the Japanese yen during the week, breaking above the 200 week EMA. That’s a good sign, and for that matter we have even broken above the 110 level which of course is a large round figure. With that in mind, I like the idea of buying on dips, but I recognize that this will be a somewhat choppy affair, because quite frankly the volatility has been sucked right out of the Forex markets as of late.
USD/JPY Video 20.01.20
We need some type of catalyst to get the market going, and although we get the US/China trade deal which led to this big move, we still need to see some type of reason to celebrate. After all, this is a pair that is highly sensitive to risk appetite, so that should be kept in the back of your mind. Having said that, it also works in the other direction, if the risk appetite falls drastically, it’s very likely that this pair will fall back through the ¥110 level and go looking towards the ¥109 level. With that, we have a couple of parameters the watch, but I think at this point looks very likely that we will go looking to retrace 100% of the most recent move, meaning that we could go as high as the ¥112.50 level. Cautious optimism is probably the best way to describe this pair as we continue to see slow but upward momentum.
Please let us know what you think in the comments below