USD/JPY Price Forecast – US dollar continues to grind

The US dollar has gone back and forth during the trading session on Tuesday against the Japanese yen as we continue to grind overall. The ¥112 level is going to be massive resistance but ultimately this is a market that continues to go back and forth and struggle to go higher. This lines up quite nicely with the S&P 500 which is in a similar situation. That being said, the market looks as if it is starting to run out of momentum and therefore we could get a little bit of a pullback. That pullback should be supported at the ¥111.50 level.

USD/JPY Video 17.04.19

If we were to break down below there then we have the moving averages underneath which are currently hugging the ¥111 level but have recently formed a “golden cross” which attracts a lot of attention although ironically, by the time you get one of these crosses, the move has already happened. (Just take a look at the “death cross” earlier in January which was actually the very bottom of the market.)

All things being equal I think that the market continues to go higher but it’s got work to do and therefore it needs to pullback occasionally. I look at those pullbacks as value that I can take occasionally, and don’t have any interest in shorting, at least not until we were to break down below the moving averages which is something that doesn’t look very likely right now.

Please let us know what you think in the comments below