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USD/JPY Price Forecast – US Dollar Hits 200 Day EMA Egain

The US dollar rallied significantly during the trading session on Monday to break above not only the ¥105 level, but also the 200 day EMA at one point. Ultimately, this is a market that is trying to decide whether or not it is changing the overall trend and let us be honest here: it certainly is making an argument for this. One of the things that you need to keep an eye on is that the interest rates in the 10 year note seem to be rising, and that could make the US dollar much more attractive than the Japanese yen.

 Furthermore, if we break above the 200 day EMA it is a signal for a lot of longer-term traders, so this is most certainly something that you will need to pay attention to. On the other hand, if we were to break down below the 50 day EMA, that could open up another attempt to break down even further. Nonetheless, we have recently broken above a downtrend line, so it certainly looks as if we are trying to change the overall longer-term trend. If that does happen, this could be a move that lasts for several months, as this pair does tend to trend for quite some time. While I am not 100% convinced on the change, each day that we make another push higher one has to realize that we could very well be seeing something significant here. The Japanese yen is on its back foot against several other currencies, so that also could come into play as well over here.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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