USD/JPY Price Forecast – Pair continues to Pound into resistance

The US dollar has rallied again during the trading session on Wednesday, reaching towards the ¥111.50 level. This is an area that begins resistance all the way to the ¥112 level, and of course it’s going to take a ton of effort to finally break out and above that level. With that in mind, it’s very likely that we are going to see a lot of volatility in this area, but if we could break out above the ¥112 level, that would be extraordinarily bullish. Ultimately, that could happen but is going to take a lot of effort to make that a fact.

USD/JPY Video 04.04.19

Although it would be against the most recent move, a breakdown is probably easier to achieve at this point. If it does happen, we could reach down towards the ¥110 level, which I see as significant support. I would be surprised to see this market break down below there, as it would probably require some type of financial shock to the system to have the Japanese yen suddenly come that strong. With that in mind, I think that what we are looking at is more grinding back and forth, perhaps down to the ¥110.50 level as well, as it is a minor support level based upon moving averages. Overall, I think this is a relatively neutral candle stick, based upon the headwinds above. This is probably one of the least exciting pairs to trade right now when it comes to the major currency markets. That being said, pay attention to the risk appetite of traders around the world, especially in stock markets to get a heads up as to where we may go here.

Please let us know what you think in the comments below