USD/JPY Price Forecast – US dollar falls against Japanese yen

The US dollar has fallen against the Japanese yen during the trading session on Thursday, as we continue to see a lot of weakness in this market. I believe that the ¥111 level underneath will offer significant support though, and with the jobs number coming out today the selling will probably be somewhat limited. Ultimately, I think that this market probably continue to be very volatile, but that’s nothing new for this pair as it is so sensitive to risk appetite around the world. Beyond that, we have Sino-American trade relations that have been in this market, so ultimately this is a situation where I think we probably need to settle down a bit before placing any type of trade. The jobs number will be the next big catalyst, so between now and then this market will be very quiet unless there is some type of major news announcement. However, when I look at this chart, I can also recognize that there are plenty of reasons to think that the erratic behavior will continue.

If we did break down below the ¥111 level, that would be an opportunity to reach down to the ¥110.50 level, an area that has been important as well. I think that this market is probably best left alone because even on the longer-term charts it looks a bit confused. With that in mind, I’m leaving this pair alone for the time being.

USD/JPY Video 07.09.18