USD/JPY Price Forecast – US Dollar Continues to Hang Around ¥110

The US dollar has initially pulled back just a bit during the course of the trading session on Monday but has seen the ¥110 level offer a bit of support. By doing so, it looks as if the market is ready to try to continue going higher, but quite frankly there is so much noise just above that I think we continue to see a lot of choppy behavior. At this point, the massive candlestick from the end of last week suggests that we were starting to see a bit of a change, but if we can break above the top of the candlestick, then it is likely that we could go looking towards the highs again.

USD/JPY Video 13.07.21

On the other hand, if we break down below that massive negative candlestick, then it is likely that the market goes looking towards the 200 day EMA near the ¥108 level. That is an area that has been important more than once, so I think it will attract a lot of attention. If we break down below there, it is likely that the market falls apart at that point. Ultimately, this is a market that will continue to move back and forth with risk appetite, as it typically does.

With this being the case, I think that the markets are going to continue to be very noisy in general, so with that being the case I am keeping my position size small in most currency pairs and this one of course is going to be no different. For what it is worth, there is a huge monthly resistance barrier just above the highs that we made a couple of weeks ago.

For a look at all of today’s economic events, check out our economic calendar.