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USD/JPY Price Forecast – US dollar gaps after G 20 against yen

The US dollar gapped higher to kick off the week, reaching towards the crucial resistance near the 108.70 area. Because of this, it’s very likely that we are going to see a bit of a pullback, which we have already started to see.
Christopher Lewis
USD/JPY daily chart, July 02, 2019

The US dollar has gapped higher to kick off the week, clearing the 108 level right away, reaching towards the 108.70 an area after that. We have pulled back slightly from there, so I think that we could see a bit of a gap fill coming soon. The question now is whether or not we can hold that area, and if we could then a move back towards 108.70 is likely. If we can break above that area, it’s likely that we will go to the 109.60 area.

USD/JPY Video 02.07.19

Keep in mind that this pair is highly sensitive to risk appetite, so seeing what the stock markets are doing it makes sense that the market could follow right along with it. Ultimately, if the stock market selloff, that’s going to be negative for this pair, perhaps driving it back down towards the 107 level. All things being equal though it does look as if we are trying to recover and the next couple of days could be very difficult due to the fact that we have 4 July coming up, and then of course the jobs figure out of America. In other words, there are plenty of reasons to think that this market could go back and forth, chopping people up along the way, causing destruction and a lot of accounts. Ultimately, I suspect that there will be some type of impulsive candle that we can take advantage of, but right now we just don’t have it. Keep an eye on this chart though, because it will give you an idea as to what risk appetite is in general.

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