USD/JPY Price Forecast – US dollar continues to find buyers

The US dollar pulled back a bit during the trading session on Friday, but then broke above the 50 day EMA, and then reached towards the 200 day EMA. At this point, the market looks likely to try to break towards the ¥111.50 level. There is significant resistance all the way to the 112 young level, so if we can break above there it’s likely that the market will then go to the ¥113.50 Level. To the downside, the ¥110 level offers major support. In other words, I think we are going to continue to go back and forth in this range.

USD/JPY Video 01.04.19

Overall, this is a pair that I think will remain choppy and therefore it should be looked at from a short-term perspective. I would have no interest whatsoever in trying to put a long-term trade on quite yet, as we don’t have enough clarity. I think at this point looking at something along the lines of the 15 minute chart is probably the way to go. Once we break out of this range things change of course, and then we could look for a larger and longer term trade.

Overall, this is a market that will take a lot of conviction to break out or break down, and therefore it’s one of my least favorite Major pairs to trade. I would keep my position size small and the time frames short until we break out of wet the obvious range is. Once that happens, then we can become a lot more aggressive.

Please let us know what you think in the comments below