USD/JPY Price Forecast November 7

On the daily chart, you can see that I have a couple of areas marked by a pair of black solid lines. I think then essentially we are trading in this area, and that the ¥113 level is essentially “no man’s land.” What I mean by this is that there isn’t a trade available right now unless you are willing to take a gamble. I think pullbacks to the ¥112 level will of course be supported as we have seen recently, but the ¥114.50 level begins a significant amount of resistance that extends to the ¥115 level.

USD/JPY Video 07.11.18

I would also point out though that once we get past the midterm election shock, or lack of, we will probably continue to focus on interest rate differential and risk appetite which is something that this pair is highly sensitive to. With that in mind, if markets begin to celebrate, it’s likely that this pair will rally as the Japanese yen will be sold off. Otherwise, I look for some type of pullback towards the ¥112 region for an opportunity to start buying again. I don’t think that we are about to see a major shift in attitude, just that we are seeing the market take a bit of a breather in what is essentially fair value of the moment. A break above the ¥115 level is very important and could send this market much higher for more of a longer-term buy-and-hold situation.