USD/JPY Price Forecast – US dollar falls against safety currency

The US dollar fell against the Japanese yen during trading on Friday as we continue to see more of a “risk off” attitude. This is a market that should have seen a lot of support at the ¥107 level, but we did sliced through it.
Christopher Lewis
USD/JPY daily chart, August 05, 2019

The US dollar breaks down below the ¥107 level during the trading session on Friday to look even more bearish. At this point, it looks as if we could very well roll over, and I think if we break down below the lows of the trading session, it’s very likely that we would see some type of major break down. At that point I would anticipate that this market would go looking towards the 100% Fibonacci retracement level, which of course is closer to the ¥105 level.

USD/JPY Video 05.08.19

Although the US dollar has been strengthening against many currencies around the world, the Japanese yen will be the outlier as it is considered to be a safety currency. In fact, it’s very likely that we will see a lot of negativity here. After all, a lot of people out there are concerned about the global trade situation and of course global growth in general. At this point, the market looks very likely to be susceptible to trouble. With all of that being the case, I think that it is probably easier for the Japanese yen to strengthen against the US dollar than vice versa, but if we were to turn around and break above the ¥180 level it would be a very strong showing by the greenback. It would also probably coincide quite nicely with the stock market rallying but we have seen a lot of trouble in that region over the last couple of days.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.