USD/JPY Price Forecast – US dollar gaps higher

The US dollar has gapped against the Japanese yen to reach towards the ¥108.50 level before pulling back slightly. The question now isn’t so much as to whether or not it’s a bullish open, but whether or not we need to pullback in order to fill the gap, which is so common. Ultimately, once we break above here we could be looking at the ¥109 level, perhaps the ¥109.70 level.

USD/JPY Video 11.06.19

Looking at this chart, it’s very likely that we will continue to see a lot of volatility, but it does look as if the markets are at least trying to jump higher, and if that’s the case it’s likely that the USD/JPY pair will continue right along with it. The ¥108 level is support, just as the 61.8% Fibonacci retracement level underneath it is. If we were to break down below there, then the market probably comes undone rather drastically.

To the upside, if we were to break the ¥109.70 level, then the market could go much higher. If we did break above there, then I think we are probably looking at the ¥111 level which is the scene of a minor gap. Overall though, I think that this is a scenario that probably attracts some value hunting, unless of course we break down below the previously mentioned 61.8% Fibonacci ratio. If we were to break down below there, then we could see the market drop all the way down to the ¥105 level underneath, which would probably signify some type of volatility and/or negativity in the stock markets.

Please let us know what you think in the comments below