The US dollar has went back and forth around the ¥110 level, an area that is obvious important as it is a previous resistance level, and of course a large, round, significant big figure. With that being the case, it’s very likely that we will see some type of attempt to bounce from here. This is a market that continues to be very noisy overall, so don’t be surprised if it gets very volatile.
USD/JPY Video 26.03.19
If we can break above the top of the range for the trading session on Monday, it’s very likely that we will go looking towards the 50 day EMA above, which is red, or possibly even the 200 day EMA above there which is black. After that, we have a significant amount of resistance that starts at the ¥111.50 level and extends all the way up to the ¥112 level. On the other side of the equation, the bottom of the candle stick for the trading session being broken to the downside would of course be negative. At that point, the market would probably reach down towards the ¥109 level, the ¥108.50 level, and then possibly the ¥108 level after that.
There’s a lot of noise just waiting to be had in this market, as it will of course move right along with risk appetite. The S&P 500 is typically attached to this chart as well, giving you an idea as to where the two can go. Pay attention to how risk appetite overall are doing.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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