USD/JPY Price Forecast – US dollar fallsThe US dollar fell during the trading session on Thursday, reaching down towards the ¥109.50 level. There is a significant amount of support that starts at the 109.70 level, so it’s likely that we could see a bit of buying in this area. If we do get a bounce above the 110 level again, things could get interesting.
The US dollar has fallen a bit during the trading session on Thursday, reaching below the 109.7 level. The 109.50 level is massive support, and therefore it would not be surprising at all to see some type of bounce. Remember that this pair tends to move in tandem with the overall markets, so pay attention to what the S&P 500 and the Dow Jones Duster Average do, because if they rally typically this pair will as well. Beyond that, there is a gap that has yet to be filled from the Monday session, so eventually one would have to believe that we are going to go looking towards that area.
USD/JPY Video 10.05.19
The question now is whether or not we can have that happen here, or do we need to go lower? I believe that once we break above the 110 level, it gives us an opportunity to be a bit more comfortable in this market and start going long to fill that gap. That would be a move to roughly 111.10 above. All things being equal though, we are still in consolidation and that’s probably the key take away from my analysis, even though things have sold off quite drastically during the week not much is changed from the longer-term outlook. With that in mind, I’m actually more interested in buying this pair then selling it but obviously I would need some type of confirmation, hence the move above 110. The alternate scenario of course is that we break down and I would recognize that if we can break the 109.33 level to the downside, perhaps aiming towards the 108 level.
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