The US dollar rallied a bit against the Japanese yen during the trading session on Monday, as we continue to see the 107 level offer some support. Having said that, there is also significant resistance in the form of the 50 day EMA above and it looks like the market has no idea what to do with itself in the end term. With that in mind, it is likely that we will see the market make an explosive move sooner or later, but at this point it looks as if we still have a lot to work out. If we can break down below the three hammers from last week, that would be an extraordinarily negative sign and it would continue the overall malaise that we have seen in this pair.
USD/JPY Video 19.05.20
However, if we were to break above the ¥108 level it is likely we would go looking towards the ¥109 level which would also be resistance. I think the one thing you can probably count on in this pair is choppiness. Quite frankly, I like fading this market but I am not looking for major gains anytime soon, and I do believe that this pair has gone back to putting everybody to sleep as it had done in the past before the massive volatility that accompanied the coronavirus nonsense in the headlines, which was so prevalent last month.
This article was originally posted on FX Empire
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