The US dollar has gone back and forth against the Japanese yen during the last couple of trading sessions, as we are between a couple of major technical indicators in the form of the 200 day EMA, and the 50 day EMA. Beyond that, we have also seen some exhaustion near the 61.8% Fibonacci retracement level which of course will attract a lot of attention.
USD/JPY Video 20.02.19
If you look to the left, you can see that there has been the lot of noise in this area as well as choppiness previously. That typically means that there’s a lot of order flow, and that will more than likely keep this market from going much higher. Beyond that, there is a lot of resistance at the ¥111.50 level that extends to the ¥112 level. Overall, I think there is far too much in the way of resistance above to keep this market from going much higher.
On the downside, the ¥109 level will be supportive, and as I look at this market it’s hard not to suspect that we will chop around on short-term charts more than anything else. While I think that we may roll over from here it’s obvious to me that it is more than likely going to be more of a grind than anything else. This will be especially true if we somehow break out to the upside but right now it looks very unlikely that we are able to do so. I suspect a slow drift lower is likely longer term, but in the short term it looks like a lot of back and forth.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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