USD/JPY Price Forecast – US dollar continues to struggle higher

The US dollar rallied a bit during the trading session on Thursday again, as we continue to try to rally. That being said, it is a bit difficult to get overly excited but it does look as if the support is trying to hold.
Christopher Lewis
USD/JPY daily chart, May 31, 2019

The US dollar continues to try to show signs of life against the Japanese yen, in what has been a significant struggle. At this point and looks as if we will eventually go looking to fill the gap higher than the ¥111.15 level. That is an area that I think the market to get to in order to fulfill a lot of empty orders. If we can break above that level, then it’s very likely that the market could then go looking towards the ¥112 level, perhaps even the ¥112.50 level.

USD/JPY Video 31.05.19

To the downside, I see the 109 level as massive support, and a break below there could open up the door down to the ¥108 level. Currently though, most markets are simply chomping around as we had into the summer months. It’s very likely that this remains a range bound market place, and therefore you should not look for major moves. I believe that ultimately we will stay between the ¥108 level on the bottom and the ¥112 level on the top for the remainder of the summer. Things can and will change, but we need to see some type of major shift in sentiment one way or the other to get this pair moving for a larger jump or fall. Keep your position size small, and your timeframe short, and use the previously mentioned levels as entry and exit points. Remember, this pair does tend to move with risk appetite so pay attention to the stock markets as well.

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