Wednesday, but at this point the markets may have gotten a bit oversold. By bouncing where we did, which is near the ¥108.50 level, it looks as if the most recent support level is going to hold, and if we can rally from here, we are going to continue the overall uptrend. This doesn’t mean that the market is going to shoot straight up in the air, but it does suggest that perhaps we are going to find a bit of positivity here. This is a very choppy market right now, and it’s likely that it will be more of a grind than anything else.
USD/JPY Video 05.12.19
Keep in mind that the USD/JPY pair is highly influenced by the stock markets in the overall risk appetite in general. As long as everything is still relatively stable, this market is likely to continue going higher. The 50 day EMA, pictured in red on the chart, is getting ready to cross above the 200 day EMA which is pictured in black. This is known as the “golden cross”, a very bullish longer-term signal. Either way, it looks as if we are trying to build up enough momentum to finally break out to the upside. The ¥110 level above is massive resistance, so if we were to clear that it would be an extraordinarily bullish sign. Keep in mind that the Non-Farm Payroll figures come out on Friday, and that will most certainly have an influence on this pair as well. With this, I like buying dips and I like buying this pair in general but I’m not looking for massive moves.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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