USD/JPY Price Forecast – US dollar moves lower

The US dollar moved lower against the Japanese yen during the trading session on Wednesday, breaking our moving averages on the one hour chart. The 20 period moving average on the daily may be a great area for this to find support if we continue lower. The 20 period may cause a certain amount of support, but as the market tightens up it looks like we are trying to build up the momentum to make a bigger move.

The USD has continued to see a move higher against the Japanese Yen this makes sense since we have seen a positive move towards an agreement from China and the USA recently. If the global economy becomes effected by the agreement not being made with US/China this may be a major problem. With that in mind it makes  sense that the pair will continue to go back and forth based upon risk appetite. As there is so much in the way of noise right now, this pair is going to find it difficult to finally break out, but once it does there seems to be a lot of momentum here that could make for a huge move.

The just above at the ¥108.80 level, there is the 50% key resistance zlevel and of course the 200 day EMA. At this point, I think it’s going to be difficult to break above there, but it certainly is a target for the buyers. To the downside, the ¥108 level offers support, at the moving average. I think that we will continue to bang around between these moving averages until something spooks the market in one direction or the other. Once it does, we are looking at a move outside this area above the 110 or below the 105.