USD/JPY Price Forecast – US Dollar Bounces Against Yen

The US dollar has shown itself to be somewhat resilient against the Japanese yen as we had broken down below the ¥106.50 level but bounced a bit to show signs of life as New York came on board. The ¥107 level will be crucial, because if we break above there on a daily close it would throw doubt into the breakdown. However, if the candlestick ends up closing below 100-6250 yen, then it suggests that we are going to continue to go lower. With that being the case, it is a simple matter of waiting to see which move we make next.

USD/JPY Video 30.04.20

Keep in mind that this pair is somewhat sensitive to risk appetite, as we have the Japanese yen which of course is the “ultimate safety currency”, and it will pick up a bit of steam if risk is shunned. Ultimately, the one thing you can probably count on is a lot of noise due to the fact that we have seen so much in the way of headlines flying back and forth. GDP in the United States missed just slightly, but quite frankly most people are ignoring that headline as we already knew things were bad. It is likely that this will be a “fade the rally” type of market in general, but the question is when it happens as far as pricing. Do not be wrong, I do not necessarily want to go “all in” on this position, but it certainly looks as if we are going to be grinding lower towards the ¥105 level over the next several weeks.