USD/JPY Price Forecast – US dollar continues to chop on Thursday against yen

The US dollar has gone back and forth during the trading session on Thursday, as we continue to go back to the “risk on/risk off” attitude. The market looks very likely to continue to be noisy overall as we talk about trade tariffs and the like, and of course there is the possibility that other geopolitical concerns rise as well. For example, the situation with Angela Merkel and whether or not she survives the political situation. Ultimately, I have two trendlines on the chart that determined both support and resistance, so I think until we can break out of this wedge, it’s likely that the market will continue to go either higher or lower, depending on the direction we break.

The market will continue to be noisy until we get that bit of confirmation, so I would be very cautious about putting too much money to work. I think that the pair will probably be one of the more difficult ones to deal with in the short term, but I think that the market is likely to eventually make its decision sometime in the next few weeks, and once it does I think that the momentum will pick up rather rapidly. In general, I believe that if we can get away from the trade tariff talk, it’s likely that we could go back to the interest rate differential, which clearly favors the upside over the longer-term.

USD/JPY Video 29.06.18