The US dollar has rallied against the Japanese yen during the trading session on Wednesday, as traders start to focus on the Thanksgiving holiday. However, we had a handful of economic numbers coming out of the United States that all looked very positive, so that of course put upward pressure on this pair as it is a risk barometer. With Core Durable Goods coming out stronger than anticipated, Unemployment Claims coming out lower than anticipated, this sent a lot of positive momentum into the marketplace. This of course has the Japanese yen selling off a bit, and therefore it looks as if we should continue to try to grind towards this massive resistance barrier.
USD/JPY Video 28.11.19
The 61.8% Fibonacci retracement level is above, and that should cause quite a bit of resistance as per usual. Beyond that, the market also has seen a major resistance barrier that extends from the ¥109.50 level that extends all the way to the ¥110 level. If we can break above all of that, this market is going to take off like a rocket ship. Otherwise, it’s possible that we simply bounce around in the same area, as the 50 day EMA is starting to reach towards the 200 day EMA. By crossing above there, it would be a very bullish sign, and the so-called “golden cross” that somebody longer-term traders pay attention to. With that in mind I believe that this market is going to make a significant move towards the upside, but whether or not it does it now is a completely different question. Buying pullbacks probably continues to work.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – Possible Santa Claus Rally Starting
- Crude Oil Price Update – Bullish EIA Report Could Launch Breakout Over $58.74
- AUD/USD Price Forecast – Australian Dollar Continues To Try And Find Bottom
- Gold Price Forecast – Gold Markets Pullback To Find Buyers
- USD/JPY Price Forecast – United States Dollar Continues To Press Major Resistance
- Gold Price Prediction – Prices Ease Following Strong US Data