USD/JPY Price Forecast – US dollar falls against yen to open up the week

The US dollar has broken down significantly during the trading session on Monday, bouncing from the ¥109.35 level. However, there is a significant amount of bearish pressure above though, so I think it’s good to be difficult to rally for anything meaningful until things calm down between the Chinese and the Americans. I think the ¥109.33 level breaking down will more than likely send this market down to the ¥109 level. However, if we were to turn around and break above the ¥110 level, then we could go looking towards ¥110.50 level.

The take away from this is that we should continue to see a lot of choppy and indecisive trading. I think this week will be very noisy in most markets anyway, and the USD/JPY pair will probably be one of the worst for this. Short-term trading is about as good as this gets, so I think that short-term selling the rallies might be the best way to approach this market if you feel inclined to put money to work. However, I suspect that if you wish to trade the Japanese yen you should probably do so against other currencies than the US dollar, as there is a lot of noise around the greenback due to the spat between America and several other nations daily. As long as that’s the case, this market will struggle.

USD/JPY Video 26.06.18