USD/JPY Price Forecast – US dollar continues to press major resistance above

The US dollar has rallied again during the trading session on Tuesday, slamming into the ¥112 level. This is a crucial level on the chart, and as a result if we can break above here on a daily close, perhaps clearing it by 25 pips or so, that would be an extraordinarily bullish sign. Pullbacks at this point should continue to see plenty of support at the ¥111.50 level. With that being the case, I do think that there is more of an upward proclivity at this juncture, but we need to let the charts tell us what to do as this is very crucial for risk appetite in general.

USD/JPY Video 06.03.19

The USD/JPY pair has a rather tight correlation to the S&P 500, which has been banging up against major resistance. If we can finally break out, that will probably pull this pair right along with it to the upside. If we get some type of meltdown over there, that will probably pull this market below the ¥111.50 level. At this point, we are at such a sensitive part on the chart that it’s probably best to stay away from this market until you get a daily confirmation on either the break out or break down. If you are short-term trader, you may be able to take advantage of back-and-forth action, but quite frankly I would caution against that as market participants seem to be especially sensitive to headlines at the moment. That being said, if you wait and acknowledge a significant candlestick on the daily time frame, you should be rewarded with a longer-term trade.

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