The US dollar has gone back and forth during the trading session on Tuesday, as the markets are starving for some type of information or news to trade off of. Because of this, there was very little going on to move the markets. With that in mind it’s very likely that we will continue to see a lot of erratic and choppy trading behavior, with almost nowhere to go at the moment. Looking at the longer-term charts though, we can give ourselves a better opportunity to perhaps glean some information from the market.
USD/JPY Video 20.11.19
The ¥110 level above is the top of a resistance barrier that is based around the 61.8% Fibonacci retracement level, which of course is an area that a lot of traders will pay attention to. With that in mind, it makes quite a bit of sense that the sellers will continue to defend that area. However, if we get a major “risk on” type of move, then we probably have the level giving way and the pair going towards the gap at the ¥111 level, and then eventually the 100% Fibonacci retracement level which is closer to the ¥112.50 level. Looking to the downside, if we were to break down below the 50 day EMA, then it opens up the possibility of the 100 day yen level, possibly even lower than that. Quite frankly, with so much going on with the US and China these days, it makes sense that this pair will eventually have an impulsive move bit between now and then it’s almost impossible to guess.
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This article was originally posted on FX Empire
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