USD/JPY Price Forecast – US Dollar Quiet Ahead Of The Week

The US dollar has been very quiet during the trading session on Friday, as we continue to see the market stagnate around the 200 day EMA. This makes quite a bit of sense, because quite frankly the 200 day EMA can dictate the longer-term trend. Beyond that, the S&P 500 has been floundering at highs, and that tends to have a bit of a knock on effect over here as the Japanese yen is considered to be a safety currency. Somewhat interestingly, the Bank of Japan had suggested that it was going to continue in massive amounts of quantitative easing going forward, but it isn’t as if the Japanese yen was suddenly sold off on that news.

USD/JPY Video 21.10.19

There is a massive amount of resistance above at the 61.8% Fibonacci retracement level, the level from which the market broke down to the lows recently. That is at roughly ¥109.40, and if we can clear that level it would be a very strong sign of buying pressure. Otherwise, if we break down below the Monday hammer that could be very negative and send this market looking towards the ¥107 level. All things being equal I think that this market probably grinds in this area rather sideways in quietly, so therefore I don’t have any money in this pair currently. However, we will get an impulsive candle that tells us which direction to trade and which target to aim for, and I of course will follow that when it comes.

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This article was originally posted on FX Empire

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