The US dollar has rallied a bit during the trading session on Friday, as we head into the weekend. At this point, the market is likely to continue going towards the ¥110 level. If we can break above the ¥110 level, then the market is likely to continue going higher, perhaps reaching towards the 100% Fibonacci retracement level near the ¥112.50 level. That being said, it’s likely to show signs of reactive behavior based upon the overall risk attitude around the world. The Japanese yen is considered to be a “safety currency”, and as a result it’s likely that we will move right along with headlines.
USD/JPY Video 02.12.19
To the downside, the 50 day EMA is starting to cross the 200 day EMA, and if it does in fact do so, there is the “golden cross”, and therefore longer-term traders will be looking to come in and pick this up. I think at this point it’s very difficult to imagine a scenario where this pair breaks down based upon the tenacity that we have seen as of late, and now that we are above the 61.8% Fibonacci retracement level, it’s likely that we will eventually find the 100% Fibonacci level. The ¥111 level above features a gap as well, so as a result that could cause a little bit of trouble in the way up, but quite frankly every time this market pulls back it should be thought of as a potential buying opportunity. In fact, it looks like the momentum is starting to build up and then we should explode to the upside.
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This article was originally posted on FX Empire
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