The US dollar went back and forth with a slightly negative twist on Friday to close out the week. The market continues to see a lot of noise, and the 50% Fibonacci retracement level has caused a bit of selling pressure. The 200 day EMA is just above and painted in black, suggesting that it will continue to bring bearish pressure again. Beyond that, the market will be very sensitive to the risk appetite around the world, as the Japanese yen is without a doubt one of the favored safety currencies. At this point, this is a market that should continue to chop back and forth but I do think it gives a certain amount of negative opportunity.
USD/JPY Video 23.09.19
While the US dollar has been favored against many other currencies, it does work in the opposite direction here and you should also pay attention to the S&P 500 and how it behaves. If it pulls back a bit, that could be very negative for this pair. However, if we were to break out in the S&P 500, coinciding with the USD/JPY pair closing above the 200 day EMA, that would be a nice buying opportunity in the market should continue to go much higher. That being said, to the downside the ¥107 level is the target for sellers and will offer a significant amount of support. If we were to break down below there, then the market will almost certainly go looking towards the ¥105 level next, which is the beginning of significant support based upon the most previous bounce.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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