USD/JPY Price Forecast – US dollar finds support on Wednesday

One thing that I should state initially is that the Independence Day holiday in the United States is going to of course affect the lot of what happens during north American trading, so keep in mind that the liquidity is going to be a major issue. However, the technical pattern does in fact suggest that perhaps the United States dollar is going to continue to find a bit of a bottoming pattern here at what is the 61.8% Fibonacci retracement level. The question now is whether or not we have bullish momentum in the stock markets to drive this pair higher? That’s very likely the case from what we are seeing in the S&P 500.

USD/JPY Video 04.07.19

However, keep in mind that the overall situation is a bit precarious, because the S&P 500 is dealing with the psychologically important 3000 handle. If we do in fact break that level in that market, it’s very likely that this pair will shoot higher as risk appetite will increase drastically. Beyond that, we have the jobs number on Friday which of course has a major influence on what happens over here as well. Ultimately, this could be a nice bottoming pattern, but we probably won’t have the actual answer until we get the jobs number out of the way on Friday. Quite frankly, the next couple of days are probably going to be somewhat difficult trading, as per usual during major holidays. However, if we do break above from here, we could be looking at a move to 100 a ¥0.50 rather quickly. As far as selling is concerned, a break down below the range of Wednesday trading could send this market down to the ¥107 level.

Please let us know what you think in the comments below