USD/JPY Price Forecast – US dollar continues to test resistance

The US dollar is running into a significant amount of resistance at the ¥112 level, basically where we started the major selloff from. At this point, the market continues to go back and forth at this area, and quite frankly the trading on Monday was horrible. The market essentially did nothing, so at this point there isn’t much to do other than observe this market and recognize when the attitude changes.

USD/JPY Video 05.03.19

If we break above the ¥112 level, at least on a daily close, then we could start to think about buying. On the other side, if we close on a daily chart below the ¥100 level, that could be the beginning of the market rolling over. Pay attention to what the S&P 500 is going, because if it starts melting down then that will be a sell signal for this market as well. Just as if it can get above the 2820 area it would be a buy signal for this pair as it has moved so closely to what’s going on over there.

Until then, I think we could see this market go sideways waiting to see what the jobs number is going to be, which is pair tends to be very sensitive to as well. If that’s the case, we may be looking at a quiet couple of days ahead. At this point, this is one of my least favorite currency pairs to trade in this type of trading environment.

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