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

The US dollar rallied a bit during the trading session on Tuesday but struggled at the ¥114 level. We pulled back just a bit to show signs of exhaustion again, and I think that there is even more of a chance that we pull back from here, as the market had gotten ahead of itself. There is a major uptrend line just below though, and at this point I think it makes sense that we will find value hunters underneath. Overall, the market does see bullish, but there are a lot of concerns out there when it comes to global growth, which is pair of course is very sensitive to.

USD/JPY Video 14.11.18

If we were to break above the yellow box above, breaking above the ¥115 level, that would of course be a very strong sign and should send this market much higher. Overall though, the market looks to be exhausted, so I think that value hunters will be waiting underneath to take advantage of any value that appears. In fact, I think it’s not until we break down below the ¥111.50 level that we could start shorting this market. The 200 day moving average is sitting there, just as the uptrend line and horizontal support is. It is because of this that I will be very cautious about shorting, but I would be more than interested in picking up some type of supportive candle underneath as it presents itself.