The US dollar has continued to see a lot of choppiness against the Japanese yen which makes quite a bit of sense considering that the market would behave like that due to the fact that the global economy is all over the place right now and of course the US/China trade situation continues to be a major problem. With that in mind it makes quite a bit of sense that the pair will continue to go back and forth based upon risk appetite, as per usual. As there is so much in the way of noise right now, this pair is going to find it difficult to finally break out, but once it does there seems to be a lot of inertia here that could make for a huge move.
USD/JPY Video 03.10.19
The just above at the ¥108.50 level, there is the 50% Fibonacci retracement level and of course the 200 day EMA. At this point, I think it’s going to be difficult to break above there, but it certainly is a target for the buyers. To the downside, the ¥107 level offers support, just as the 50 day EMA does above there. I suspect that we will continue to bang around between these moving averages until something spooks the market in one direction or the other. Once it does, we are looking at a move to the ¥105 level on the downside, and the ¥110 level on the upside.
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This article was originally posted on FX Empire
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