The US dollar broke down a bit during the trading session on Friday, as we continue to see a lot of concerns when it comes to global growth. Stock market sold off a bit, and that typically weighs upon this pair as well. Overall, I believe that this market is going to go looking towards the ¥105 level, but the question is whether or not we will get some type of bounce between now and then? I think we may, but it will be short-term at best. I’m looking for selling opportunities based upon exhaustive candles, but I also recognize that we could just go straight down to the ¥105 level.
USD/JPY Video 12.08.19
If we break down below the ¥105 level, then the market goes down to the ¥102.50 level. Ultimately, short-term rallies continue to offer an opportunity to pick up the Japanese yen “on the cheap.” To the upside, I believe that the ¥107 level offers massive resistance. It was previous support, so it makes sense that “market memory” would come back into play here, so therefore I have no interest in buying this pair. Ultimately, the market will continue to be soft and negative, and at this point the only thing that’s going to turn this around will be the Bank of Japan intervening, which they will do it eventually. However, I don’t think they’re quite to that point yet.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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