USD/JPY Price Forecast – US Dollar Continues To Grind
The US dollar has initially dipped during the trading session on Monday, but then bounced enough to show signs of life again as the market continues to struggle with the idea of ¥110 as resistance. Ultimately, this is a market that moves right along with risk appetite, so it is worth paying attention to the stock markets and the like in order to discern which direction this market should be going. After all, the Japanese yen is considered to be the ultimate “safety currency”, and as there is a lot of fear out there it wouldn’t be a huge surprise to see the market rollover based upon some type of headline.
USD/JPY Video 18.02.20
All that being said, the stock markets were closed in the United States for Presidents’ Day, so that of course will have an influence on the market. Longer-term, the market will continue to look at the ¥110 level as a major barrier, so if we can make a fresh, new high that would be very good sign for this pair, allowing it to grind towards the ¥111 level, and then the ¥112 level. To the downside, the 50 day EMA which is painted in red on the chart should offer support, just as the uptrend line well. A break of the uptrend line opens up the door to the ¥105 level. When looking at the longer-term charts, the ¥110 level is essentially “fair value” between the ¥105 level and the ¥115 level that has been so supportive and resistive over the longer term.
This article was originally posted on FX Empire
