USD/JPY Price Forecast – US dollar continues to fall against Japanese yenThe US dollar fell a bit against the Japanese yen during trading on Monday, as we continue to see a lot of concerns around the US/China trade relations. Money went into the Japanese yen as it is considered to be a safety currency, and of course stock markets got hammered in the Asian future session.
The US dollar has fallen a bit against the Japanese yen, breaking through the ¥109.50 level. This is a very negative turn of events for this pair, but there is plenty of support underneath. Because of this, I’m not necessarily looking to sell this market, but rather looking for some type of supportive bounce, especially if I can find it near the ¥108 level which would represent decent value.
USD/JPY Video 14.05.19
Keep in mind that this pair does tend to follow risk appetite, so pay attention to what the stock markets are doing. If they are falling apart, it’s very likely that this pair will continue to fall. That is what we started to see initially, so therefore it’s not a huge surprise to consider that this market would struggle. However, if we get some type of recovery in the stock markets after this latest round of tariff nonsense, we could very likely find this pair turning right back around and recapturing the ¥109.7 level. If we do, that would be an extraordinarily bullish sign. At that point, I would anticipate a return to fill the gap at the ¥111 level, something that I expect to see sooner or later anyway.
Looking at this chart, you are probably going to need to see some type of daily close with support to take advantage of what I believe will be a very strong support level underneath. Because of this, I would place any trades based upon daily closes and not intraday charts.
Please let us know what you think in the comments below