USD/JPY Price Forecast – US dollar back to 107

The US dollar has initially gapped lower against the Japanese yen only to turn around during early trading on Monday to reach towards the ¥107 level again. This is an area that has been both support and resistance recently, so it looks as if we are at a short-term inflection point.
Christopher Lewis
USD/JPY daily chart, October 08, 2019

The US dollar has gapped lower during the trading session on Monday, but then turned around to fill that gap to reach towards the ¥107 level. By doing so, the market looks as if it is going to try to break to the upside and perhaps even the 50 day EMA again. However, this is an area that has been both support and resistance so don’t be surprised at all to see more of a fight. In fact, I think it’s a 50 pip range that we are essentially trading in between the ¥107 level and the ¥106.50 level that is going to determine what happens next. If we can break to the upside, then we will probably test the ¥108.50 level. However, if we were to break down below the ¥106.50 level, then the market probably goes looking towards the ¥105 level.

USD/JPY Video 08.10.19

Obviously, this pair is very risk sensitive and with the US/China trade relations in focus right now, it’s very likely that the market will be volatile as headlines and leaks of meetings will show up in the news. Ultimately, this is a market that could jump back and forth over the next couple of days, but by the end of the week we may have a bit more clarity as we will have both the junior and senior meetings during the week in Washington DC. In the short term though, keep your position size small as you won’t want to be caught on the wrong side.

Please let us know what you think in the comments below

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
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.
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.