USD/JPY Price Forecast – US Dollar Continues to Struggle Against Yen

The US dollar has gone back and forth during the trading session on Thursday, as we continue to see quite a bit of volatility. Both of these are safety currencies, so that of course will keep this market very noisy. The fact that we are below the ¥107 level tells me that this market is likely to continue to struggle elevate itself, as the ¥107 level is an especially important level. This being the case, we will have to pay attention to whether or not we can break back above there. If we do, that would be a very bullish sign but at this juncture I believe that we still have broken significant support and that something that should be paid attention to.

USD/JPY Video 01.05.20

This does not mean that we cannot get some type of bounce, and it does not even mean that we cannot break above the ¥107 level and then follow right back down through it. What it does mean is that the easier trade is to the downside. If we can break down below the hammer from the Wednesday session, it is likely that we go down to the ¥105 level. To the downside, I believe that the ¥105 level will be massive support, and at this point if we were to break down it could open up a move all the way down to the ¥102 level rather quickly. Volatility is going to be one of those things that will be a mainstay of markets in general.