USD/JPY Price Forecast – US dollar falls against safety currencyThe 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.
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.
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