USD/JPY Price Forecast – US dollar continues to weaken as risk dies off

The US dollar broke down a bit during the trading session on Tuesday, reaching towards the bottom of the trading session on Monday. Because of this, it looks as if the market is going to roll right back over and go looking towards the ¥105 level.
Christopher Lewis
USD/JPY daily chart, August 21, 2019

The US dollar rolled over a bit during the trading session on Tuesday, breaking below the bottom of the trading session on Monday. This of course is a very negative sign, and it should send this market much lower. At this point, the ¥107 level above should continue to be resistance, so I think the market will continue to find sellers near that area. At this point, the ¥105 level underneath would be your target, as it is massive support. All things being equal this is a pair that is wrist sensitive and the risk sensitivity is very high at this point as US/China trade relations continue to fall apart.

USD/JPY Video 21.08.19

Eventually, I believe that the market breaks down below the ¥105 level, and then reached towards the ¥102.50 level. Beyond that, the market is very likely to reach down towards the ¥100 level. Given enough time, the market looks very soft and I think that although the US dollar is favored against most currencies, the Japanese yen will of course be a bit of an outlier as it is an even more worse save currency than most others.

In the meantime, I believe that fading rallies will continue to work on short-term charts, and ultimately the market will continue to favor a lot of volatility with a negative slant. If we did break above the ¥107 level, I think we will struggle at the 50 day EMA just above that level. All things being equal, this is a sell for me.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.