USD/JPY Price Forecast – US dollar continues to churn against Japanese yen

The US dollar has rolled over against the Japanese yen in early trading on Wednesday as we continue to see a major churn when it comes to this pair. Ultimately, this is a market that will continue to be very noisy based upon the geopolitical situation between the United States and China being somewhat fluid, and of course stock markets all over the place, although reaching the highs in the United States we do have some major divergence when it comes to the S&P 500 and the NASDAQ 100. In other words, there are far too many landmines out there to feel comfortable buying a lot of risk.

USD/JPY Video 03.07.19

To the upside, the ¥108.70 level causes major resistance, and if we can break above there it would in fact be a significant turn of events, sending this market towards the ¥109.70 level. To the downside, if we were to break down below the previous 61.8% Fibonacci retracement level, then the market is very likely to break down to the lows, perhaps even down to the ¥105 level. Ultimately at this point the markets are in a holding pattern so I would not expect too much going forward. This is a scenario that makes it very difficult to trade, so we need to watch one of these levels get broken before putting money to work. That may not be until the end of the week after the jobs figure comes out.

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