USD/JPY Price Forecast – US dollar continues to show strength against Japanese yen

The US dollar has continued to show strength overall, and I believe it’s only a matter of time before we break out as it looks like we are trying to form some type of basing pattern in this pair. If we can break out above the 100 level ¥0.50 level, the market could then go to the ¥112 level, perhaps even the ¥112.50 level. I believe that short-term pullbacks continue to find buyers underneath, and I believe that it’s only a matter of time before the market reaches the higher levels, especially considering that the Japanese have recently announced that they are willing to buy “unlimited” 10 year JGB’s.

Ultimately, I do think that we have bottomed in this pair for the most part, barring some type of major shock to the system. I don’t necessarily think that is going to be the easiest trade to take, but eventually longer-term traders should prevail in this market, especially considering that it looks like the market is trying to get a “risk on” attitude going, which of course helps this market. Overall, I like the idea of buying short-term dips, which offer value in what I think is a market that is turning around for longer-term move. In general, the market looks likely to be noisy, but if you are patient enough there should be plenty of opportunities for both short-term and long-term traders to the upside. Expect volatility but keep an upward bias.

USD/JPY Video 30.07.18