USD/JPY Price Forecast – US dollar finds buyers against Japanese yen

The US dollar fell during the trading session on Thursday, but found plenty of support at the ¥110 level, a large come around, psychologically significant figure as well as one that is structurally important. That being the case, we have bounced quite significantly from there and it looks very likely that we will continue to see a lot of buying pressure as the pair is being thrown around due to stock markets, treasury markets, and a whole host of other situations.

USD/JPY Video 29.03.19

What it looks to me like is a market that’s trying to form some type of range, with the ¥110 level being obvious support, and the ¥111.50 level is obvious resistance. That resistance extends to the ¥112 level, so think of that more as a zone. I think we are going to bounce around in this area until we get some type of clarity when it comes to global markets, and of course the trade war situation. Looking at the chart I think that you are going to see a very messy range but I do think that it’s only a matter of time before we get clarity. Until that happens though, you must simply play the market that’s offered, and at this point it looks like it’s going to be a tight back-and-forth type of market that’s offered.

If we were to break down below the ¥110 level on a daily close, we could drop down to the ¥109 level, and then possibly the ¥108 level. To the upside, if we break above the ¥112 level, at this point it’s kind of hard to figure out how far will go but I would anticipate that the ¥113.50 level would be the initial target.

Please let us know what you think in the comments below