USD/JPY Price Forecast – US dollar finding support against yen on Tuesday

The US dollar has pulled back early during Tuesday trading, but the ¥111 level has offered enough support to turn things around. The ¥111 level is psychologically important obviously, as it is a large, round, psychologically significant number. Overall, I think that the market will continue to rally, especially if we can get good news coming out of the trade war front, which seems to be calming down. With the agreement between the Mexicans and the Americans, that’s a good sign, so I think it’s only a matter of time before the US can pivot to the Chinese situation, perhaps working out some type of deal.

At that point, this pair will more than likely take off to the upside. In general, I think that if we do break down though, there will be buyers underneath and it will probably only be a matter of time before we rally towards the highs again. If we do break down, I think the “floor” in the market is near the ¥110 level, an area that has been important more than once. I think that the market should continue to be important and should attract a lot of attention. Overall, I think that the market could very well turn around and go towards the ¥112 level, then possibly the ¥113 level. Obviously, we need a little bit of good news to lift the market, which I think is coming sooner or later. However, if we break down below the ¥110 level, the market could unwind down to the ¥109 level.

USD/JPY Video 29.08.18