USD/JPY Price Forecast – US dollar continues to face resistance

The US dollar continues to face resistance against the Japanese yen, as the ¥112 level has been crucial. If we break down, there is significant support just below as well. In other words, we are essentially stuck in a bit of a range.
Christopher Lewis
USD/JPY daily chart, April 18, 2019

The US dollar has done very little against the Japanese yen for the last several days, and Wednesday of course wasn’t any different. We continue to see resistance just above the ¥112 level, which is the gateway to reaching towards the ¥113.50 level. If we do in fact break out to the upside could be rather sudden, and with a lot of force. This would probably coincide with a strong move in the stock markets, which of course are going through earnings season currently.

USD/JPY Video 18.04.19

Overall, this is a market that seems a bit stuck at the moment, without any real decision being made quite yet. If we were to break down below the ¥111.50 level, then we could unwind a bit. Ultimately, this is a market that I do believe continues to show a lot of attention, and we will eventually make a significant move. If we were to break down below the 100 and level ¥0.50 level, the next obvious support level would be the ¥111 region, but at this point we need some type of catalyst which I believe will have something to do with earnings season.

Ultimately, this is a market that you should be observing is probably not trading as there is absolutely no volatility to be had. However, we have obvious levels that we should be paying attention to, and therefore it’s crucial to have an eye on the chart even if you don’t have money to work because there could be a nice opportunity presenting itself soon.

Please let us know what you think in the comments below

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