USD/JPY Price Forecast – US Dollar Crashes Into Support

The US dollar has broken down during the trading session against the Japanese yen, reaching towards the ¥108 level. This is an area that I thought could be supportive, and it’s also an area where we would expect a bit of a bounce from. Overall, if the market was to break down below the ¥108 level, then it’s likely that the market then goes to the ¥107 level next, followed by the ¥105 level. This isn’t to say that I think the pair is going to fall apart, just that I think we are going to continue to go back and forth and wild swings, which of course isn’t much of a stretch of the imagination considering what we have seen recently.

USD/JPY Video 30.03.20

Remember, the pair is highly sensitive to risk appetite so it’s very likely that we will see a lot of back and forth based upon the latest headline. Quite frankly, this is going to be a very difficult pair to trade, but there are some milestones to pay attention to. The ¥112 level above is massive resistance, so it’s not until we break above there that the longer-term uptrend can be counted on. To the downside, the closer we get to the ¥100 level, the more support we should start to see, most definitely from the Bank of Japan which doesn’t like that level being broken. At this point, expect huge volatility and massive swings. We are closer to the top than the bottom, so look to fade rallies but they give this more like a longer-term trade instead of what’s happening in the next 24 hours.