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USD/JPY Price Forecast – US dollar choppy against Japanese yen

By:
Christopher Lewis
Updated: Sep 3, 2019, 16:16 UTC

The US dollar continues to chop around back and forth during the trading session as the risk appetite around the world is essentially all over the place. At this point, I think we are going to continue to stay within the consolidation area that we have been in.

USD/JPY daily chart, September 04, 2019

The US dollar has gone back and forth during the trading session on Tuesday, as we continue to see so much in the way of concern. With that, I think it’s only a matter time before we reach back down towards the ¥105 level, an area that will cause a certain amount of support. As we continue to consolidate between the ¥107 and the ¥105 levels, we are essentially waiting for the jobs figure on Friday before making a bigger move.

USD/JPY Video 04.09.19

To the upside, the 50 day moving average will continue to offer resistance near the ¥107 level, so therefore I think it’s yet another reason to expect selling pressure in that region. Ultimately, I think this is a market that will struggle going forward, especially with the US/China trade relations going so poorly. I think at this point it’s very likely that we will see an attempt to break down through the ¥105 level, and then towards the ¥102.50 level given enough time. Beyond that, I believe that we go down to the ¥100 level, which will more than likely attract a lot of attention from the Bank of Japan. I don’t know that they will intervene there, but they will most certainly say something. All things being equal, this is a market that should continue to find plenty of reasons to bang around in this range, and I think the markets will continue to be very noisy until we get the jobs number once we get the jobs number it’s very likely that we could get a bigger move.

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.

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