The US dollar has gone back and forth against the Japanese yen during the trading session on Friday as we try to break out to the upside, but there is a whole slew of technical reasons to think that this market may not be able to. At this point, the 61.8% Fibonacci retracement level is probably going to cause some issues, just as the ¥110 level will. At this point, it’s very likely will we need to see is some type of US/China trade headlines to send this market higher.
USD/JPY Video 11.11.19
Underneath, the 200 day EMA should continue to offer support, as we have bounced from there and previously have seen resistance there. At this point, the market should continue to go higher, if we get some type of good news coming out of either Beijing or Washington. It’s very likely it will happen over the weekend if it happens at all. Short-term pullbacks will continue to have plenty of support underneath at the 50 day EMA which is currently trading around the ¥108 level. Ultimately, this is a market that will continue to show choppiness, and more likely indecision. At this point though, it certainly seems resilient so it’s going to be easier to buy dips more than anything else in this pair. Shorting this pair is not something that I’m looking to do anytime soon, as there has been an obvious grind higher for quite some time. However, if we were to break down below the ¥108 level, then the market probably breaks out even further.
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This article was originally posted on FX Empire
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