The US dollar has shown signs of resiliency during the trading session on Thursday after initially shooting to the downside based upon the American Congress passing a Hong Kong bill that shows solidarity with the Hong Kong protesters. Ultimately, this is a market that will continue to be very choppy as we are testing a major resistance barrier. That being said, the market is likely to continue to be lackluster but bullish. There is a lot of noise between here and the ¥110 level, so if that level gets cleared, then we can take off to the upside finally.
USD/JPY Video 29.11.19
Keep in mind that this pair is highly sensitive to risk appetite, as the Japanese yen is considered to be the “ultimate safety currency.” If there is more fear in the market, this pair falls. Otherwise, if there is more risk appetite out there then it’s likely that this pair will rally as people step away from the safety of the Japanese yen. Ultimately, a break above the ¥110 level allows the market to go looking towards the ¥111 level, and then eventually the ¥112.50 level after that which is the 100% Fibonacci retracement level. It should be noted that there is a gap at that ¥111 level, and therefore it should attract a lot of attention and potential resistance that the market will have to deal with. Ultimately, I expect that to happen but we need some type of good news coming out of the US/China trade situation in order to make that happen.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/JPY Price Forecast – British Pound Breaks Out Against Japanese Yen
- Don’t Get Lulled to Sleep by the Tiny EUR/USD Moves
- GBP/USD Daily Forecast – Sterling Sellers Cap Rally at 1.2950
- Crude Drift Lingers in Light Holiday Trade
- GBP/JPY Bullish SHS For Uptrend Continuation
- GBP/USD – Pound Calm in Light Trading Session, U.S Markets Celebrate Thanksgiving