USD/JPY Price Forecast – US dollar continues to grind sideways

The US dollar has gone back and forth against the Japanese yen during the trading session on Wednesday as we are testing the ¥108 level. This is an area that has been important more than once, and the fact that we continue to show a lot of back and forth in this area makes sense, because it’s an area that has been important more than once. Beyond that, the market has the 61.8% Fibonacci retracement level is just below there as well. If we were to break down below the ¥107.70 level, then it opens the door to a major break down and has the market looking for ¥105.

USD/JPY Video 06.06.19

To the upside, if we can break the highs of the last couple of days, then I think the market goes to the ¥109 level. A break above there opens up the door to the ¥109.70 level. Keep in the back of your mind that the USD/JPY pair tends to follow risk appetite in general. One of the best barometers that I’ve seen in the past has been the S&P 500, as it rallies in good times.

However, one of the reasons we break down may have nothing to do with risk appetite but simply the fact that Jerome Powell is talking about easing monetary conditions if it’s necessary. Because of this, you need to look at the last couple of levels that I have mentioned to make a trade. In the short term though, I believe that the market continues to be choppy and short-term.

Please let us know what you think in the comments below