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USD/JPY Price Forecast – US dollar looking for support

Christopher Lewis
Updated
The US dollar fell a bit during the trading session on Friday, as we continue to see a lot of resistance above at the 200 day EMA. At this point, the 61.8% Fibonacci retracement level has offered significant resistance as well, but as we go into the weekend it looks like we are trying to find some type of footing.

The US dollar has pulled back a bit against the Japanese yen over the last couple of days, but later in the day on Friday we are starting to see a little bit of buying. I think we still have further to go to the downside but I also recognize that the ¥110 level underneath will offer a significant amount of support. This is a market that continues to be very noisy, but I do believe that it can offer rather interesting short-term opportunities.

USD/JPY Video 18.02.19

On a rally, I fully anticipate that the 200 day EMA will offer resistance again near the ¥111 level. I believe there is even more resistance at the ¥111.50 level. Underneath, I think there is plenty of support at the ¥110 level, so this is probably going to be more of a day trading pair in the short term. Will we rollover and make a bigger move to the downside? That’s very possible that it’s going to take some type of catalyst. Ironically, we have had a couple of bad economic sets of numbers out of the United States of the last 48 hours that hasn’t exactly crushed this market. Under normal circumstances that would be the case but quite frankly the markets hardly anything resembling normal as of late, and I don’t expect that to change anytime soon.

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This article was originally posted on FX Empire

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