Advertisement
Advertisement

USD/JPY Price Forecast – US dollar bounces

By:
Christopher Lewis
Updated: Mar 27, 2019, 16:28 UTC

The US dollar bounced after initially pulling back on Wednesday against the Japanese yen. We continue to dance around in this overall range, so quite frankly I don’t see much here other than a continuation.

USD/JPY daily chart, March 28, 2019

The US dollar initially fell during trading on Wednesday, but then bounced enough to form a somewhat bullish candle by the time we got North America on board. At this point, it looks as if we are trying to carve out that the consolidation area I mentioned yesterday between the ¥110 level on the bottom, and the ¥111.50 level on the top. We are currently testing the middle of that area, so that of course will be somewhat difficult to overcome. Overall though, it does look as if this range is going to hold and it could offer short-term trading opportunities for those who are quick enough.

USD/JPY Video 28.03.19

To the downside, if we were to break down below the Monday candle stick, then we could drop to the ¥109 level, and then eventually the ¥108 level. To the upside, the ¥111.50 level extends all the way to the ¥112 level, so it’s not until we break above all of that area that the longer-term buyers will come in and try to pick this market. Ultimately, this is a market that is probably going to remain very choppy because a lot of the external factors to this pair are somewhat choppy themselves. Some of the other markets that you can watch for a bit of a heads up will be the S&P 500, which does look as if although bullish over the last several weeks, is starting to face a lot of headwinds, therefore as this pair is highly risk sensitive it will probably be just as choppy.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement