USD/JPY Price Forecast – US dollar chops on Monday against yenThe US dollar went back and forth against the Japanese yen during the trading session on Monday to start the week. This is a market that is essentially at short-term “fair value”, so it’s going to be difficult to trade for a bigger position.
The US dollar has gapped higher to kick off the trading session on Monday but has turned right back around to fill that gap already. With that in mind, I believe that this market is going to continue to go back and forth and look for some type of opportunity. At this point, I look at the ¥110 level as the “bottom” of the range, just as I see the ¥111.50 level above offers significant resistance. With that being the case, and the fact that we are right in the middle of that range it makes sense that this would essentially be where you see a lot of back-and-forth on shorter-term charts.
USD/JPY Video 02.04.19
With that being the situation we find ourselves in, I think this is a market that you are better off waiting to reach towards the outer part of the range, and then trade it accordingly. Once we do break down, then we can start putting more money to work for a bigger position. At this point, I suspect this is probably one of the least favorable markets to be involved in, and therefore I’m simply waiting for some type of clarity. It may be a while, because this pair tends to move right along with the stock markets and the risk appetite around the world, so with all of the moving pieces geopolitically and of course with other situations such as the trade negotiations between the United States and China. Ultimately, I think you are looking at a market that is going to be very difficult.
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