The US dollar has rallied towards the 61.8% Fibonacci retracement level again against the Japanese yen. At this point, the market is very likely to continue to see noise in this general vicinity, and quite frankly it’s almost impossible to imagine a scenario where we can make a move without some type of catalyst at this point. There is a massive amount of noise right around the ¥109.50 level, based upon that 61.8% Fibonacci retracement level and of course the major meltdown candle we had seen several months ago. I also believe that the resistance runs to the ¥110 level, which is an area that is a large, round, psychologically significant figure, and therefore this is going to be a major barrier to overcome.
USD/JPY Video 13.11.19
Pulling back from here could see plenty of support near the 200 day EMA and judging the way this market has traded over the last several hours, it’s likely that we are simply ready to go nowhere at this point. In general, this is a market that does look like it will eventually break out, especially as it tends to follow the stock market, but you may be waiting a while for that move. The 50 day EMA is starting to move towards the 200 day EMA, offering a potential “golden cross” that you can take advantage of as well as longer-term traders will pay quite a bit of attention to that. A breakdown below the 50 day EMA would change a lot of things, but right now it doesn’t look very likely to happen.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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