USD/JPY Price Forecast – Gap continues to offer support

The US dollar fell initially during the trading session on Thursday, as Asian markets were a bit soft. However, we have seen a significant amount of buying pressure at the gap from earlier in the week, and as the Americans come on board it looks as if the market is probably going to simply levitate in this region.
Christopher Lewis
USD/JPY daily chart, June 14, 2019

The US dollar has pulled back significantly during the trading session on Thursday but has found enough support underneath the turn around and form a bit of a hammer going into the north American session. This is a market that seems to be attracted to the 100 a ¥0.50 level, and as we are trying to form a couple of shooting stars followed by a couple of hammers, it shows just how confused this market is right now. Keep in mind that this pair tends to mimic what we see in the stock markets in America, so at this point it’s not a huge surprise that we have no clarity.

USD/JPY Video 14.06.19

That being said, if we can break above the Tuesday shooting star, I believe that is a clear sign that we are going to try to wipe out the breakdown candle that extends all the way up to the ¥109.65 level, roughly. I do see a lot of support underneath at the ¥108 level and of course the 61.8% Fibonacci retracement level, so I suspect that it’s likely to go higher than lower, but if we break down below the 61.8% Fibonacci retracement level, this market probably unwinds down to the ¥105 region. Granted, that probably needs some type of help to happen, perhaps a meltdown in the stock markets. Remember this, this pair tends to move right along with risk appetite.

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