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USD/JPY Price Forecast – US dollar fails at major resistance level

By:
Christopher Lewis
Updated: Apr 8, 2019, 15:53 UTC

The US dollar failed at a major resistance level over the last couple of days, as the range continues to hold the market down. With that in mind, it looks very likely that we are going to continue to drift lower. However, that doesn’t necessarily call for a meltdown.

USD/JPY daily chart, April 09, 2019

The US dollar has rolled over during trading on Monday against the Japanese yen, but not necessarily in some type of negative trade, more like we just are continuing what I believe is going to be a range. Looking at the chart, it’s obvious that we have massive resistance between the ¥111.50 level, and the ¥112 level. That being the case, the market rolling over isn’t much of a surprise, and I think we’re going to go looking towards the ¥110 level underneath. That doesn’t mean it’s going to be easy to do, and there certainly could be a bit of support at the ¥110.75 level.

USD/JPY Video 09.04.19

With interesting is that this pair tends to move with risk appetite, but I think there is a general selling of the US dollar that can’t be ignored. This is why I think that although this market will fall, it will probably be a little less dollar negative than many of the other majors. However, there certainly is an area that we can draw on the chart that’s worth trading. If we break to the upside and clear the ¥112 level, we could go as high as ¥113.50, just as the ¥110 level underneath is massive support and breaking through that could open up the door to the ¥108 level. Either way, at this point it looks very much like a market that is going to continue to see choppiness and volatility, but a well-defined range simply must be traded.

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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