The US dollar pulled back a bit during the trading session on Monday in the early hours, but there does seem to be a significant amount of support underneath that should continue to show a certain amount of resilience. The ¥107 level underneath should offer plenty of support, just as the ¥108 level above has offered significant resistance. All things being equal, the market does look like it is try to figure out where we are going next but I would also point out that the pair is highly sensitive to risk appetite, and therefore it is possible that we may go up or down depending on that.
USD/JPY Video 02.06.20
If we were to break down below the ¥106.90 level, then the market is likely to go looking towards the 160 and level. On the other hand, if the market were to break out above the ¥108 level, then the market will have to deal with the 200 day EMA. All things being equal though, the one thing you could probably count on is a lot of choppy behavior, so I would not put too much money into this pair until we get some type of impulsive candle.
However, if you are a short-term trader you may be able to trade back and forth. Ultimately, the 50 day EMA seems to be a magnet for price as well, so that should be paid attention to also. All things being equal, if you are looking to scalp the market, then this might be the best place to be involved in. At this point, the market has been very noisy, and I suspect that continues.
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This article was originally posted on FX Empire
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