USD/JPY Price Forecast – US dollar crashes into resistance

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