USD/JPY Price Forecast – more messy trading on Wednesday for Dollar/Yen

The US dollar has been very messy against the Japanese yen over the last 24 hours, but the one thing that continues to hold true is that the ¥110 level seems to attract attention. It’s because of this that I think the buyers will probably return in that area, although I’m not looking for some type of explosive or life-changing move at that point. I suspect what we are looking at is simple short term consolidation, probably in 50 pips increments still, and we are in the consolidation between ¥110 and ¥110.50 at the moment. Obviously, we will eventually break out of this area, and once we break out of this 50 pip range, the chart lines up nicely for another 50 pips in whichever direction we break. That’s how this pair has been lately, bouncing around in small increments.

I believe that we will continue to see this type of trading action, at least until we get some clarity on several fronts. This includes the Brexit, the Turkish situation, the political situation in the United States, and a whole host of things that I’m probably forgetting as I write this. In other words, this is a good short-term trading environment. If you are a short term trader, right now this is probably the best pair to be involved in. We have well-defined 50 pip ranges to trade, so you might as well take advantage of them.

USD/JPY Video 23.08.18