The US dollar has fallen during most of the week against the Japanese yen but what you can’t see on the weekly chart is the massive hammer that has formed on Friday. This obviously is a very bullish sign, and it’s likely that we will continue to go higher given enough time. The 200 week moving average is just above, and a break above that level would be a very bullish sign perhaps offering a move towards the ¥112.50 level which is the 100% Fibonacci retracement level.
USD/JPY Video 09.12.19
We have recently broken above the 61.8% Fibonacci retracement level, which of course is a bullish sign in and of itself. The ¥110 level seems to be extraordinarily stubborn though, so we need to get above there before the market can really start to take off to the upside. Pullback should continue to offer buying opportunities unless of course we break down below the ¥107 level, which would be a very negative turn of events. Keep in mind that this pair is highly sensitive to the risk appetite around the world, and of course the US/China trade situation. It looks as if there is a bit more optimism out there, so it makes sense that we should continue to go higher. That being the case, I do like the idea of a longer-term core position being built, but I recognize you will have to deal with a lot of noise in the process.
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This article was originally posted on FX Empire
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