The US dollar has initially fallen during the trading session on Friday, to reach down toward support again near the ¥108.50 level. We have since bounced after the stronger than anticipated jobs number, and therefore it looks as if the markets are ready to form the so-called “golden cross” when the 50 day EMA crosses above the 200 day EMA. This is a very bullish sign for longer-term traders and therefore it looks like we may finally have a serious go at the resistance above.
USD/JPY Video 09.12.19
The great thing about this set up is that there is an obvious barrier above that if we can break through should send this market much higher. The ¥110 level is an area that getting broken will signal that the pair is ready to go much higher, and it should be noted that there are several other yen related pairs that have already broken out. It’s only a matter of time before this one follows, and therefore one should be paying attention to other pair such as NZD/JPY, GBP/JPY, AUD/JPY, and the like. As they rise, this will put upward pressure on this pair as well.
With this, I like buying short-term pullbacks, and I do believe that eventually we get the ability to break out and go towards the ¥111 level where there is a small gap, and then eventually the ¥112.50 level which is the 100% Fibonacci retracement level. I have no interest in shorting this pair, it seems to be far too supported going forward. Remember, it’s also very risk sensitive, it seems that it’s most certainly “risk on” at the moment.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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