The US dollar has rallied against the Japanese yen a bit during the day on Monday, as we continue to see the greenback recover against the Japanese yen. At this point, I am still looking for selling opportunities and I recognize this as a short-term bounce against an oversold condition. I do not anticipate that this market suddenly turns around for a bigger move, and at this point it is only a matter of time before the sellers take over again.
USD/JPY Video 11.08.20
The 50 day EMA above could offer quite a bit of resistance, which is colored in red on the chart. It is currently sitting at ¥106.75 area, and then of course we have the ¥107.50 level that has offered such significant resistance. I think at this point it is only a matter of time before we see a selling opportunity, and I will be monitoring shorter term charts such as the four hour chart, looking for an opportunity to take advantage of what has been a significant negative move in the greenback.
The Federal Reserve continues to flood the market with greenbacks, so that dries down the value. However, both of these currencies are considered to be “safety currency”, so the movement in this pair will probably be less drastic than other ones like the AUD/USD, USD/CAD, etc. With that in mind, little bit of patience will be crucial, as you should get a significant opportunity soon. However, there is a bit of a correction going on across the Forex world, so that something that could influence this pair as well.
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This article was originally posted on FX Empire
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