USD/JPY Price Forecast – the US dollar continues to fall

The US dollar continues to fell against the Japanese yen during trading on Wednesday, as traders came back from the holiday. Ultimately, the market looks as if it is going to continue to see a lot of bearish pressure, and perhaps going down to even more support.
Christopher Lewis
USD/JPY daily chart, January 03, 2019

The US dollar fell significantly against the Japanese yen during the trading session on Wednesday as traders came back from the New Year’s Day celebrations, breaking below the ¥109 level. Although there was a bit of a snapback, I suspect that the ¥110 level above is going to offer significant resistance, so therefore it could offer yet another selling opportunity. Trading in this pair will be choppy, but that’s to be expected as it typically is. Remember, the pair tends to trade based upon risk appetite and global growth, and with the Japanese looking to not necessarily tighten monetary policy, but essentially running out of things to liquefy, I suspect that there will be an artificial tightening of the yen this year.

USD/JPY Video 03.01.19

The US dollar, although strong against many other currencies will probably continue to fall against the Japanese yen as the Federal Reserve looks likely to raise interest rates twice this year, not three times. Because of this, the US dollar will probably suffer against other currencies that are tightening. Ultimately, I think this also will get a bit of a boost to the downside if headlines around the world continue to deteriorate. Global trade tariffs between the major superpowers and the deterioration of overall global GDP could continue to push this market much lower. It’s not until we break above the 200 day EMA that I would be interested in buying this pair, but I don’t see that happening anytime soon.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US