USD/JPY Price Forecast – US dollar continues to push

The US dollar tried to rally a bit during the trading session on Wednesday again, but as we have seen more than once, it seems as if the sellers are willing to defend this area above. If we broke above the ¥115 level that could change everything, but in the meantime I think what we are looking at is a market that is getting very exhausted. This market certainly has a lot of support underneath at the ¥112 level, the uptrend line, and the 200 day EMA.

USD/JPY Video 15.11.18

Keep in mind that this pair is highly sensitive to risk appetite overall, which of course has continued to fail. I think the one thing to keep this market somewhat afloat is the fact that there is the US dollar involved in, and that of course helps quite a bit as the US dollar has seen so much in the way of support against most currencies. However, if the market goes running for safety, they do tend to buy the Japanese yen. That’s part of the volatility that we see in this pair, simply nobody knows where to go in other markets, which of course has its knock on effect over here. I think if we can break above the ¥115 level, it will certainly make a strong case for 120 and down the road. If we can ever get rid of some of the other issues such as the trade war, and perhaps even the Brexit, then this pair can focus on interest rate differentials which should be what makes it break out.