Yahoo Finance USD/JPY Price Forecast – US Dollar Pulls Back Against Japanese Yen
The US dollar has pulled back a bit against the Japanese yen, in what would be thought of as a “risk off” type of situation. That being said, this market is highly sensitive to risk appetite so with the multitude of issues that the global economy has right now it’s not hard to imagine a situation where the Japanese yen continues to be a market that traders jump in and out of.
USD/JPY Video 15.11.19
The 50 day EMA is starting to reach higher, and that should in theory send this market to the upside. At this point, the market is likely to view the 50 day EMA breaking above the 200 day EMA as a positive sign. However, there is still a significant amount of resistance above at the 61.8% Fibonacci retracement level. This area, which I believe extends from ¥109.50 to the ¥110 level, is going to be rather difficult to clear, but if and when it finally does, this market will take off to the upside. That opens up a move to the ¥111 level, and then possibly even the ¥112.50 level as it is the 100% Fibonacci retracement level.
As far as pullbacks are concerned, I see several areas a potential support. Keep in mind that the USD/JPY pair is a bit of a proxy for the S&P 500, and it should be noted that the S&P 500 has several support levels underneath just as this currency pair does. In other words, I fully anticipate that this will move lockstep with that stock index.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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