USD/JPY Price Forecast – US dollar finding buyers

The US dollar initially fell during trading on Thursday but found support again after dipping. By turning around and bounce in the way it has, this is a market that looks very likely to continue to see a bit of a fight. We are in the midst of a major consolidation area, so this is something to be paid attention to.
Christopher Lewis
USD/JPY daily chart, May 17, 2019

The US dollar initially fell during the trading session on Thursday but found support underneath the turn around and break back above the ¥109.70 level. This is a good sign, and it suggests that markets are ready to try to make an attempt to get to the gap near the ¥111 level. If so, then we can start to test significant resistance. Ultimately, this is a market that should continue to see a lot of volatility, which should not be much of a surprise considering that the Japanese yen is considered to be a “safety currency.”

USD/JPY Video 17.05.19

This chart also suggests that perhaps the stock market should do fairly well, as it is a risk sensitive market. The pair tends to rally in good times and fall in bad. That gap lower on Monday is something that almost always gets filled, so keep that in mind. Looking at the charts, I believe that the ¥109 level underneath is massive support, so if we were to break down below there it would be an extraordinarily negative turn of events. However, it’s very likely that we are going to see buyers on value based upon the way the lows continue to get higher. With all of that, you should be advised that if we get a sudden and very negative turn of events in the markets, this could reverse. However, the resiliency here should not be ignored.

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