The ETH/USD markets have fallen significantly during the trading session on Friday to lose almost 7% and test the 50-Day EMA. In other words, the rally in Ethereum suddenly finds itself under extreme pressure. This furthermore will confirm the possibility of the risk appetite fading rather quickly, as the stock markets have seen similar moves over the last couple of days.

Ethereum has been rallying quite hard due to the idea of the network upgrade moving forward. Ethereum has led the cryptocurrency markets in general, but at this point in time, I think it’s worth noting that Bitcoin has also fallen rather hard, so it’s all taking a bit of a beating during the day. The fact that Ethereum led the market is probably not a huge surprise, but it’s also worth noting that the $2000 level has been like a hard top in this market.

Will there be explosive moves?

The 50-Day EMA does cause quite a bit of technical support, but at this point, there’s no real reason to think that the markets can bounce just because we’re there. It’s probably worth noting that the 50 Day EMA underneath and the 200 Day EMA above causes a bit of a squeeze as well, so I think we are about to get some type of explosive move. If I had to bet, it would more likely than not end up being a move to the downside. This will be especially true if we start to see a lot of risk appetite disappear in other markets as well.

On the other hand, if we do get a sudden “risk on move” around the world, that could probably help Ethereum as well.

• If Ethereum can break above the $2000 level, that would obviously be a major victory, and it most certainly would be positive if we can break above the 200 Day EMA, sitting right around the $2100 level.
• Any move above there has a lot of technical analysts looking at this as a technical uptrend. We have to assume that the theory would have quite a bit of follow-through at that point.
• I think we have a rather noisy move ahead of us, and more likely than not it’s going to be to the downside. $1200 could be targeted on the move lower, perhaps even all the way down to the $900 level.

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The USD/JPY has climbed again and the value of the Forex pair is testing heights not seen since September of 1998.

The USD/JPY is trading near a value of 136.580 as of this writing. The famed Forex pair is trading with a lot of volatility and spikes have been demonstrated. Trading the USD/JPY should be done by speculators who have experience; if people with a lack of historical knowledge want to trade the Japanese Yen they should use extreme risk management. In fact, speculators with a lot of experience should use extreme risk management too.

The USD/JPY did see some selling after the U.S Federal Reserve released its interest rate policy last week and a low of nearly 131.500 was seen on the 16^th of June.  This lower short term realm did come about after the USD/JPY had hit a high of nearly 135.500 on the 14^th of June. The USD/JPY not only has a proven track record of trending in a very clear manner, but it also has the capability to move with a lightning pace as financial institutions seek equilibrium.

When trading opened yesterday the USD/JPY was roaming around the 135.000 juncture, but upon suddenly bursting through the 135.500 vicinity, the pair developed serious price velocity upwards. A late night high in the USD/JPY yesterday flirted with the 136.750 level, while the USD/JPY has come off of this high it has not traversed much lower.

Traders may suspect and fear the USD/JPY cannot go much higher.  They may be tempted to sell the USD/JPY based on the notion that gravity will have to enter the market at some point and a bearish move will be ignited. However, timing the exact moment the USD/JPY is going to suddenly start to reverse and proceed downwards, breaking through support remains a nearly impossible task. In the meantime technical traders need to look at long term charts, correction – very long term charts, to gain a perspective regarding potential direction.

While it might seem hard to believe, the USD/JPY can trade higher.  In October of 1998 the USD/JPY was trading near the 139.000 juncture. And in July of 1999 the USD/JPY was trading near the 144.000 juncture. Current economic conditions globally are rather extraordinary, and the results of the USD/JPY have produced ratios financial institutions are not used too perhaps, but we have seen these numbers before.

Traders who can use risk management effectively may want to continue to wager on upside momentum. If the USD/JPY breaks above the 136.750 level and starts to challenge the 137.000 juncture and suddenly sustains power above this ratio, more surprises from the USD/JPY could develop upwards. Speculator need to use their risk management tactics wisely, this cannot be overstated. The USD/JPY will continue to produce volatile trading conditions.

USD/JPY Short-Term Outlook

Current Resistance: 136.710

Current Support: 136.050

High Target: 138.780

Low Target: 134.930

ETH/USD has been able to reverse higher off of extreme lows which were displayed this Saturday, but speculators should remain braced for more volatile conditions.

ETH/USD is trading near 1135.00 as of this writing.  Speculators can double check current prices to monitor the movement Ethereum has demonstrated compared to this article as a way to judge momentum within ETH/USD. After hitting a low of nearly 880.00 this past Saturday, ETH/USD has been able to produce upwards momentum. However, traders who have been attuned to Ethereum over the long term know that a bearish trajectory remains troubling.

If ETH/USD can maintain its current price above the 1100.00 in the short term, that could create the prospect for very speculative bets on upside prospects. However any trader who dares to look for higher movement from ETH/USD will not only have to be brave, but they will need to be using their entire gauntlet of risk taking tactics. Trading in Ethereum today and near term should include entry price, stop loss and take profits orders. Simply put the possibility of ETH/USD suddenly becoming volatile is rather good. Short term moves higher do not guarantee that a solid upwards climb is going to be maintained.

The broad cryptocurrency market remains a dangerous place to speculate. Traders who remain skeptics and believe more downside momentum will be generated within ETH/USD and the other major cryptocurrencies may be making the logical choice, but being able to capture moves lower will also need a solid dose of risk management. Large percentage changes of value can make a trader profitable, but wrong moves can also be costly.

If ETH/USD breaks below the 1100.00 mark this could spark additional selling in ETH/USD.  A move to 1075.00 in Ethereum would not be a welcome site if price velocity bursts forward. Support below the 1050.00 level should be monitored, because if this level proves vulnerable another move to lower depths could develop.  Another move below 1000.00 in the near term would be a bad signal for ETH/USD and greater declines could ensue.

Traders should not be overly ambitious in the current market, they should be willing to cash out profits when they are satisfied, this before watching money vanish into thin air when reversals develop which go against the chosen direction of a desired target. The ability of ETH/USD to climb higher the past couple of days incrementally should serve as strong reminders price movements do not happen in only one direction, even if there is solid trend to observe. 

Ethereum Short Term Outlook:

Current Resistance: 1158.00

Current Support: 1088.00

High Target: 1284.00

Low Target: 933.00