USD/JPY Price Forecast – US Dollar Attempts to Continue Move Higher Against YenThe US dollar has rallied a bit during the trading session on Tuesday, breaking above the neutral candlestick for the Monday session. This is a relatively bullish sign, but one should also keep in mind that the volatility is going to continue.
The US dollar has broken higher during the trading session on Tuesday, breaking above the candlestick that was so neutral and interesting on Monday. This suggests that we could go higher but we are also seeing a bit of the selloff as the Americans come into play. At this point, I think what this dictates is that we are going to continue to see a lot of volatility and there’s no two ways about it. Ultimately, the market is more likely to see wild swings so you should keep your position size relatively small.
USD/JPY Video 01.04.20
The pair of course reacts to the risk appetite of traders around the world, which is undoubtedly going to be all over the place. I think given enough time, we probably see this market have violent swings and therefore one can only be cautious when trading this market. If we can close the daily candlestick above the ¥108.75 level, then I suspect that we will grind it towards the highs again, closer to the ¥111 level. However, if we close at 107.50 or lower, we very well could drop towards the ¥105 level given enough time. I would be a bit cautious, but I do think it’s only a matter of time before the market has to make its decision. We are essentially at “fair value” at the moment between the massive support at ¥105 and the massive resistance at the ¥111 region. Because of this, there is a lot of “push pull” when it comes to the marketplace.