USD/JPY Price Forecast – US dollar continues sideways grind against Japanese yen

Christopher Lewis
Updated
The US dollar did very little during the trading session on Friday, as we are continuing to find a lot of noise from here to the ¥112 level. That is an area that has been trouble for some time, but quite frankly we have a lot of support underneath as well. The jobs number seems to have done nothing to move the market in one direction or another.

The US dollar went back and forth during the trading session on Friday as we continue to see a lot of noise above, and especially at the ¥112 level. This market continues to be very choppy and difficult to trade for any significant move, as we are essentially stuck in this area. Ultimately, if we break above the recent high, we could open the door to the ¥113.50 level, but it’s going to take a lot of momentum building to get there. If we do, then the move could be rather quick as it will be an obvious break out.

USD/JPY Video 06.05.19

The 200 day EMA pictured in black on the chart has offered significant support, just as the 50 day EMA which is pictured in red has. Because of this, I think there is still a lot of difficulty in shorting this market, but buying it is difficult as well. In other words, this is a market that we need to see some type of impulsive move in one direction or the other to get involved with. If you are looking to trade the US dollar, you are going to be better off doing it against other currencies. The Japanese yen being a safety currency while the US dollar is simultaneously has made this market very quiet over the last several weeks.

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This article was originally posted on FX Empire

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