USD/JPY Price Forecast – US dollar looking for support against Japanese yen

The US dollar went back and forth during the trading session on Tuesday as the ¥107.50 level continues to attract a certain amount of attention. Beyond that we also have the 50 day EMA just below offering support as well, with the 200 day EMA above offering resistance. Ultimately, this is a market that is highly sensitive to risk appetite, so it should be noted that as the S&P 500 goes, so goes the USD/JPY pair typically. However, we should eventually get some type of decision when it comes to the directionality of risk appetite, and that could help this pair make its next move.

USD/JPY Video 25.09.19

If we were to close below the red 50 day EMA on a daily chart, then it sends the market looking towards the ¥107 level, perhaps even the ¥106.25 level. Underneath there, the market could then go down to the ¥105 level which was the most recent lows again. It should be noted that for the bearish case, the 50% Fibonacci retracement level has held just above.

The bullish case would be breaking above the 200 day EMA on a daily close. That is pictured in black on the chart, and if the market were to close above there, it could send the USD/JPY pair looking towards the ¥110 level above, which was the scene of a lot of order flow in the past. Ultimately, in the meantime it looks like choppy sideways action would be more likely than not.

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