USD/JPY Price Forecast – US dollar choppy in mixed trading

The US dollar has gone back and forth during the trading session on Thursday, testing the ¥108 level, as it is an area that has been important more than once. All things being equal, this is a market that simply has no idea where to go next, so I believe what we are about to see is more of a range bound type of market, which makes quite a bit of sense considering that it is that time of year. Quite frankly, it’s very unlikely that things are going to change anytime soon, as we have to worry about lack of volume this time a year. Unfortunately for us, August tends to be one of the thinnest markets out there, as most larger traders are away for holiday.

USD/JPY Video 26.07.19

Just above, we have the 50 day EMA which could cause a bit of resistance, and then of course we have the ¥108.75 level. That’s an area that could cause quite a bit of resistance based upon recent action. To the downside, we have the ¥107 level underneath offering support. All things being equal I think that we eventually will see this market bounce both of these areas in order to build up some type of base. The question now course is do we go higher or lower. If we break down to the lower side, then we could go as low as the ¥105 level. However, a break to the upside is likely to reach towards the ¥109.75 level above as it has been an area of interest in the past.