USD/JPY Price Forecast – US dollar rallies to kick off week
The US dollar has rallied a bit against the Japanese yen during the trading session on Monday, but then is starting to face a bit of resistance in the form of the ¥107 level. I think at this point the market is going to continue to chop around and be noisy, but more than likely what we are about to see is an attempt to rally right along with the stock market but the 50 day EMA will start to come into play which is in red on the chart. If we do break through the 50 day EMA then the market will probably start looking towards the ¥108 level.
USD/JPY Video 20.08.19
Keep in mind that this pair is highly sensitive to risk appetite, and therefore it’s likely that we will continue to see this move right along with the S&P 500 as per usual. That being the case, if we see some type of selling pressure in the S&P 500 or perhaps other indices, that may send this market right back down. We are still very much in a downtrend so I’m looking to sell this pair after some type of rally that shows signs of exhaustion. At this point, we would probably see the market try to reach the ¥105 level underneath yet again as it has shown such massive support. That being said, the market is going to move right along with that risk appetite so pay attention to major indices around the world to give you a bit of a secondary indicator.
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This article was originally posted on FX Empire
