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USD/JPY Price Forecast – US dollar crashes into resistance

By:
Christopher Lewis
Updated: Apr 12, 2019, 17:39 UTC

The US dollar crashed into resistance during the trading session on Friday, as the ¥112 level continues to be crucial. This is an area that will attract a lot of attention in and of course be crucial, as we have seen 50 pips of massive resistance keep the market lower over the longer-term.

USD/JPY daily chart, April 15, 2019

The US dollar has rallied significantly against the Japanese yen during the trading session on Friday, as we continue to see a lot of volatility in this pair. We have been trading in a range for some time, and therefore the fact that we have been messing about in this area makes quite a bit of sense. The ¥112 level has been crucial as far as sellers are concerned and has been defended quite drastically. To the downside, we have quite a bit of support underneath at the ¥110 level, so I think we are simply continuing to go back and forth in this area, trying to figure out where we want to go longer-term.

USD/JPY Video 15.04.19

If we were to break out above the resistance, then it’s likely we could go as high as the ¥113.50 level, mainly because it is an area that we had seen a lot of selling at. The S&P 500 is trying to rally somewhat significantly, so if we can continue to break to the upside in that market, we very well could see that translate into a higher level in this market. This pair does tend to move in the same direction as the S&P 500 long term, so obviously that would be worth paying attention to.

If we were to break down significantly, we could go as low as the ¥110 level, but giving that up opens the door to the ¥108 level. I anticipate that we would need to see some type of major financial disturbance for that to happen though.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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