The US dollar has gone back and forth during the trading session on Tuesday, as the 50 day EMA has offered a significant amount of resistance. The ¥107 level of course is an area that has attracted some attention recently, but it’s more of a “zone” than anything else. Beyond that, the 50% Fibonacci retracement level is at the ¥106.50 level, which is an area that we had seen previous resistance. Essentially I look at this market as having a 50 pip range.
USD/JPY Video 09.10.19
A break above the ¥107.50 level would of course send this market towards the ¥108.50 level. To the downside, if we were to break down below the 50% Fibonacci retracement level, then the market goes down to the 61.8% Fibonacci retracement level, and then possibly down to the ¥105 level which of course is a large, round, psychologically significant figure. We have recently pulled back a bit, so this suggests that perhaps the sellers are starting to flex their muscles slightly, but this is a market that will continue to be choppy to say the least.
With the US and China meeting to have conversations this week, it’s probably only a matter time until the market gets disappointed in the results, and therefore start buying the Japanese yen yet again. However, if we did get good news out of there, it’s possible that this market could go reaching towards the 200 day EMA above, which is painted in black.
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This article was originally posted on FX Empire
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