USD/JPY Price Forecast – US dollar bounces from big figure on Tuesday

The US dollar has rallied significantly against the Japanese yen during the trading session on Tuesday, bouncing from the big figure at ¥110. This is an area that has been important more than once, so it’s not a huge surprise that there would be some type of reaction to it. I think there’s even more support at the ¥109 level, so even if we do break down I believe that the loss is are probably somewhat limited, this is especially true now that the US dollar has been so favored in general.

On the upside, the ¥111 level will offer the first significant resistance above the cluster that we are trading in, and one can make an argument for the ¥113 level above being the larger consolidation ceiling. At this point, I think we probably drift a little bit lower, but I’m not looking for a meltdown by any means. I think that this remains a short-term traders market, and of course is heavily influenced by global trade talks and rumors. This pair will probably continue to suffer as long as there are concerns involving the Americans and Chinese, which doesn’t seem to be going away in the short term. Yes, there is a certain amount of low-level talks slated, but that’s just the beginning. I suspect that short-term trading is probably going to be a feature of this pair for the next several days, if not weeks going forward.

USD/JPY Video 22.08.18