The US dollar continues to rally against the Japanese yen in general, but we have seen a lot of resistance near the 61.8% Fibonacci retracement level, or the ¥109.50 level. We have pulled back there on Friday as Donald Trump suggested that getting rid of tariffs wasn’t something he’s agreed to quite yet. That being the case, it’s very likely that the market will continue to struggle in general, but if we could finally break above the ¥110 level, the market is likely to go much higher. All things being equal, it’s probably a market that will eventually break out given enough time, but we need good headlines to push this pair higher.
USD/JPY Video 11.11.19
In the meantime, the market looks likely to find buyers on dips, unless of course the US/China trade situation collapses completely. If it does, then this market will more than likely go racing back to the ¥108 level, and if it breaks below there it’s likely that the market will collapse completely. That being said though, there has been a lot of resiliency in this pair every time it has pulled back, so more likely than not we will see a serious attempt to break out. Expect volatility in general, but the market breaking out to the upside offers a significant move to the ¥112 level, possibly even higher than that.
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This article was originally posted on FX Empire
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