Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
USD/JPY daily chart, April 03, 2018
Japanese ten thousand yen banknote

The US dollar has been flat during trading on Friday, after initially pulling back over the last couple of sessions. The lack of liquidity on Friday would have made trading very difficult, but I think that the 106 level will offer a bit of support. After the impulsive move to the upside, I think that the USD/JPY pair will go looking towards the 107 handle. Remember that this pair is highly sensitive to the trade war talks between the US and China, and if things start to flare up, this pair will probably drop rather drastically. Otherwise, if we get some type of agreement, and by extension some type of optimism, the market should go much higher, perhaps reaching towards the 107.50 level.

If we can break above the 107.50 level, the market should then go to the 110 handle. I think that breaking above there would be a very bullish sign and could send this market looking towards that level rather quickly. I believe that the fight at 107.50 is going to be monumental and will hinge almost solely upon trade war talk. I think that we will continue to see a lot of noise, so the short-term pullback that happens occasionally should offer value that people will take advantage of. The market will obviously be very noisy, but that’s nothing new for this pair. If we were to roll over and break down through the 105 handle, that would be a very negative sign indeed.

USD/JPY Video 02.04.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.