USD/JPY Price Forecast – US Dollar Runs Into 200 Day EMA

The US dollar has gone back and forth against the Japanese yen during trading on Monday, as the 200 day EMA has offered far too much in the way of resistance to get above. By doing so, it shows that perhaps the market is ready for a bit of a pullback. Overall, this is a market that continues to be very sensitive to risk appetite, and of course the US/China situation is going to continue to be first and foremost among the thoughts that drive this pair.

USD/JPY Video 15.10.19

After the Chinese left Washington DC, they have suggested that the deal that was talked about will be signed until there is more talks. In other words, it was essentially a big “nothing burger” which is something that the market probably should have known to begin with. However, hope springs eternal and traders are now waiting to see some type of conclusion to the situation. It doesn’t look very likely anytime soon though, so at this point it makes sense that the market would pull back just a bit and reach towards the ¥107 level underneath, which is massive support.

The market will move on the next headline coming out of either Trump or China, so that has to be taken into account but the ¥108.50 level has been reliable as far as its resistance, so it does make even more sense that we pull back from here. A break above this level of course would be rather strong on a daily close, perhaps sending this market towards the ¥110 level, but that would need some type of positive catalyst to make it happen.

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