Advertisement
New Zealand markets closed

  • NZX 50

    11,804.84
    -111.94 (-0.94%)
     

  • NZD/USD

    0.5897
    -0.0009 (-0.16%)
     

  • NZD/EUR

    0.5549
    -0.0005 (-0.09%)
     

  • ALL ORDS

    7,866.10
    -143.30 (-1.79%)
     

  • ASX 200

    7,616.30
    -136.20 (-1.76%)
     

  • OIL

    85.94
    +0.53 (+0.62%)
     

  • GOLD

    2,403.80
    +20.80 (+0.87%)
     

  • NASDAQ

    17,706.83
    -296.65 (-1.65%)
     

  • FTSE

    7,965.53
    -30.05 (-0.38%)
     

  • Dow Jones

    37,735.11
    -248.13 (-0.65%)
     

  • DAX

    18,026.58
    +96.26 (+0.54%)
     

  • Hang Seng

    16,317.92
    -282.54 (-1.70%)
     

  • NIKKEI 225

    38,537.38
    -695.42 (-1.77%)
     

  • NZD/JPY

    90.9490
    -0.0780 (-0.09%)
     

USD/JPY Price Forecast – US dollar sideways against yen

Christopher Lewis
Updated
The US dollar has gone back and forth against the Japanese yen over the last several for our candles, as we consolidate the gains that we had recently enjoyed. It looks as if the market is ready to look for a reason to go higher though.

The US dollar has gone sideways against the Japanese Yen overall during the trading session on Thursday, as we continue to try to digest the gains as we broke above the ¥112.50 level just the other day. That of course is a bullish sign, as we have bounced from the 61.8% Fibonacci retracement level, which of course is a major technical signal. We have been in and uptrend for some time, and I think we will continue to see people try to push this market to the upside. Overall, I believe that this market will continue to rally, especially if we can get some type of “risk on” move in the stock markets, which have been remarkably resilient in the face of a major selloff last week.

If we were to break down below the 61.8% Fibonacci retracement level at the 100 level ¥0.50 handle, then I think things would change rather drastically. At that point, we would be looking for a move down to the ¥110 level next. However, I believe that the buyers are here for the longer-term move and will eventually try to grind towards the ¥114.50 level above which has been major resistance several times. It will take pullbacks like these to build up the necessary momentum to finally break above that level and continue a longer-term move to the upside. On the whole, I am bullish but I also recognize that this pair does tend to be very volatile.

USD/JPY Video 19.10.18

This article was originally posted on FX Empire

More From FXEMPIRE: