The US dollar has pulled back a bit during the trading session initially on Wednesday but found support at the 50 day EMA again to turn things around and show signs of life. The fact that we have rallied the way we have suggests that we are going to continue to grind higher. The market continues to struggle with the 61.8% Fibonacci retracement level above, and if we can break above there it’s likely that the market could go higher. That would be confirmed by moving above the ¥110 level, and as a result the market breaking above that level would be a huge victory. At that point, it will more than likely go looking towards the 100% Fibonacci retracement level, which is closer to the ¥112.50 level.
USD/JPY Video 21.11.19
To the downside, the market more than likely has plenty of support at the ¥108 level, and then underneath there at the ¥107 level. Keep in mind that this pair is very risk sensitive, and of course we have a whole plethora at headlines out there that could move this market back and forth. At this point, the market looks likely to continue to be very noisy, so short-term trading is probably the best way to trade the USD/JPY pair, or any other pair that features the Japanese yen for that matter. Ultimately, pullbacks look as buying opportunities, but at this point it’s obvious that the market is going to be short-term focused more than anything else.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD Price Forecast – Australian Dollar Finds Buyers
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3113.75 Sets the Tone Today
- Crude Oil Price Forecast – Crude Oil Markets Recover On Wednesday
- Heliogen Makes Major Breakthrough In Solar Technology
- GBP/USD, EUR/GBP, USD/CAD – Currencies in Holding Pattern Ahead of Fed Minutes
- GBP/USD Price Forecast – British Pound Continues To Find Buyers On Dips