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USD/JPY Price Forecast – US Dollar Faces Overhead Resistance

Christopher Lewis

The US dollar has gone back and forth against the Japanese yen in early trading for the week, but the ¥110 level should continue to be an area that should cause a certain amount of resistance based not only upon previous selling, but also the psychological importance of the 110 level. Looking at the chart, it’s easy to see that there is a bit of confusion in considering that it is the day after Non-Farm Payroll numbers in the United States, it should not be surprising at all that the markets have nowhere to be on a Monday.

USD/JPY Video 11.02.20

That being said, a pullback should be a buying opportunity, reaching down towards the 50 day EMA which is painted in red on the chart. On the other hand, if the market breaks above the recent highs near the ¥110.35 level, then the market is free to continue going higher. While the US dollar is highly bit against most currencies, there is also the risk appetite aspect to this pair that should not be ignored. In other words, we need some type of good news to send this pair to the upside with any type of momentum. To the downside, the uptrend line in the channel should continue to come into play and keep this market somewhat supported on dips. More than likely, you will get a buying opportunity if you are simply patient enough to wait a couple of days. Until then, this is probably a pair that should be avoided as it has no real reason to move in one direction or the other over the next 24 hours. However, there are clear support and resistance levels to pay attention to.

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This article was originally posted on FX Empire

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