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03 Dec 2019
2 min read

USD/JPY Price Outlook

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Written by OspreyFX News Team

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.

USD/JPY Price Outlook

  • The pair continues under broad-based selling pressure.
  • Will the bulls be able to break the 109.90 key resistance level?

USD/JPY Price Outlook: Under broad-based selling pressure

The week, and month, started in favour of a broad-based USD weakness in the financial markets. Dragging the USD/JPY pair to test the 109.00 handle.

The sellers appeared not only in the Forex sphere but in major benchmarks across the globe. Particularly in the European indexes, which posted fresh lows among recent trade war headlines.

Also, the risk sentiment weighed on the price action and helped to give a boost to the JPY demand and other safe-haven assets. The spot is currently trading below the 50 SMA at the 4H chart and continues to hover below the 109.00 neighbourhood. There is an ongoing sentiment that a leg lower could happen in the coming hours, due to the latest developments in the trade front between China and the US.

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Dollar’s performance after Black Friday

However, eyes will be on Black Friday and Cyber Monday’s performance in terms of retail sales made during that period. USD/JPY is close to reaching the 200 SMA, and if it gives up in favour of the bears, together with the bullish trend line drawn from October’s lows, then it could point towards the 108.27 level.

Moreover, if a breakout happens below such an area, the pair will target the next key demand zone established around 107.59. The move could produce a death cross of moving averages, which should provide support to the bearish bias on a short-term basis.

Focus in 110.00

To the upside, if the quote continues to trade above the 200 SMA, the bulls will be wanting to reach the 109.90 level. Which is a key resistance to the north. If that region is broken by the bullish bias, the focus will shift towards 110.64, which could also strengthen the trend.

According to the technical oscillators, RSI is staying in the negative territory, while momentum points downwards, both signalling further declines.