The US dollar has gone back and forth during the week, forming a bit of a neutral candle stick, as we have slammed into a significant resistance barrier. Ultimately, this is a market that has to figure out what it wants to do next, considering that there was a significant break down from the ¥109 level. Ultimately, this is a market that is risk sensitive and therefore you should pay attention to risk appetite scenarios like the S&P 500. If the S&P 500 breaks out to the upside, that could be the catalyst to send this pair much higher.
USD/JPY Video 21.10.19
To the downside, the ¥107 level should offer support, but if we were to break down below there it’s likely that we could go to the ¥105 level. If the market was to break above the 50 week EMA and the noise in that area, the market probably goes looking towards the ¥110 level, which should be crucial as it is a large, round, psychologically significant figure. Obviously, if we can clear the ¥110 level that would be an extraordinarily bullish sign. At this point, it probably needs the S&P 500 to break out to throw more “risk on” into the trading world. Until that happens, I suspect we probably continue to grind back and forth in this area that we are in. The week was very quiet, even though the Bank of Japan suggested that it was going to be extraordinarily loose with its monetary policy going forward, which should have sent this pair much higher.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/USD Weekly Price Forecast – British Pound Slams Into Major Level
- Natural Gas Weekly Price Forecast – Natural Gas Markets Finish Week Is One
- Gold Price Forecast – Gold Markets Sideways
- Silver Weekly Price Forecast – Silver Markets Form Supportive Candle For The Week
- Natural Gas Price Forecast – Tropical Depression Sparks Short Covering
- GBP/JPY Weekly Price Forecast – British Pound Slams Into Major Level This Week