USD/JPY Price Forecast – US dollar choppy against yen

One of the main reasons I don’t trade the nonfarm payroll Friday sessions is that although you can get major moves, most the time you get a lot of back and forth trading and essentially at the end of the day you end up where you started. This is a big problem for those who are looking for significant gains. This is one of those days from what I see so far as I record this, because the US dollar has risen slightly against the Japanese yen, but not enough to make it worth worrying about. It appears that we are continuing to hang about the ¥110.50 level as a bit of a fulcrum for price, and it’s likely that could continue to be the case in the short term.

The Japanese yen is quite often used as a proxy for Chinese currency, and therefore traders will continue to look at this as a venue to express their opinions about the trade war. If it continues to escalate, it’s difficult to see how this market takes off to the upside. However, the US economy is strong so it’s not exactly as if the market is going to break down here either. With this in mind, I think that we get a lot of back and forth trading, and I continue to look at the 111 level above as being a bit of a significant barrier. If we can break above that level, then we can go a bit higher, probably 112.50 after that, but currently it looks as if we are simply resigned to short-term range bound trading.

USD/JPY Video 09.07.18