USD/JPY Price Forecast – US dollar continues to consolidate

The US dollar has pulled back a bit against the Japanese yen to kick off the week but I think there is support below at the ¥110 level. Overall, the market looks very likely to continue to respect that area, but even if we were to break down below there I think there’s even more support at the ¥109 level. With that in mind, keep in mind that this pair is highly sensitive to trade war talks coming out between the United States and China, so that’s obviously an issue. I think at this point, the US dollar is probably going to be very choppy in this market as we worry about global trade, but if we do finally get that solution, then we could see this market work on fundamentals again, meaning that this pair should go higher eventually.

In general, I think that we will not break below the ¥109 level unless of course some type of major escalation in the trade war occurs. Although it has captured a lot of headlines, the reality is that we are still talking about a relatively minor situation. Ultimately, I believe that the ¥112 level above is the top of the overall range. In general, I think you can look at this as a situation that you can play with more of a range bound attitude more than anything else right now. I have much more interesting pair is out there that I’m looking at than this one, but short-term scalping is most certainly possible in this market.

USD/JPY Video 21.08.18