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

The US dollar fell against the Japanese yen during trading on Thursday, as we continue to see a lot of concerns around the world. This makes quite a bit of sense, as the Japanese yen is considered to be a major safety currency.
Christopher Lewis
USD/JPY daily chart, August 16, 2019

The US dollar has fallen against the Japanese yen during the trading session on Thursday, as we continue to see a lot of fear in the marketplace. With that being the case, it makes quite a bit of sense that the market would favor the Japanese yen as it is one of the first places that currency traders will go in time of trouble. While the US dollar is also considered to be a safety currency, the reality is that the Japanese yen is the ultimate one.

USD/JPY Video 16.08.19

Looking at the chart, the ¥107 level should cause quite a bit of resistance, and we have in fact pulled back from there yet again. It was previous support so now that we have rallied towards that area and pull back it only puts out an even more clear-cut signal as to where the top of the short-term range is.

To the downside I see the ¥105 level as a major support level. If we can break down below that level it will then wipe out the 100% Fibonacci retracement level, which makes quite a bit of sense that the market would in fact do that, because we have broken down below the 61.8% Fibonacci retracement level, and that typically happens once we do get below there. Beyond the ¥107 level causing resistance, we also have the 50 day EMA reaching down towards that level, which just gives us another opportunity to find sellers in that particular reason.

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