Yahoo Finance USD/JPY Weekly Price Forecast – US Dollar Pulls Back During The Week
The US dollar has pulled back a bit during the week, as it looks likely to test the ¥109 level. At this point, there is also the 50 day weekly EMA underneath going sideways. At this point, the market is likely to see a lot of support, so it is probably somewhat limited to the downside. Keep in mind that this pair does tend to move with risk appetite so pay attention to the stock markets and the like. The stock markets are a little overextended at this point, and gold is starting to show signs of strength on Friday so it’s possible that the Japanese yen picks up a little bit of strength. Nonetheless, it’s not until we break down below the 100 day in level that I would consider shorting this pair, and from the longer-term standpoint it certainly looks as if it is trying to reach the top of the longer-term consolidation range.
USD/JPY Video 27.01.20
When you look at the chart, you can see that the ¥105 level is supported and the ¥115 level above is resistance. We are currently trading right around the “fair value” level. I like the idea of looking for support and value when it’s offered, but in the meantime it’s obvious that the market needs to drop a bit in order to have longer-term buyers come in. At this point, the market looks very likely to find buyers given enough time. Pay attention to the risk appetite in general, that should determine whether or not we can rally.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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