USD/JPY Price Forecast – US dollar gaps lower to kick off the week

The US dollar initially gapped lower against the Japanese yen in a bit of a safety bid to kick off the week after the previously mentioned tweets were sent out. That being the case, we reached towards the ¥110.25 level before turning back around. We have not filled the gap above though, so it’s likely that we may at least make an attempt to do so. If we do, then it’s very likely that we continue to go towards the ¥111.50 level, which is an area that began significant resistance. However, it’s also abundantly clear that the ¥110 level underneath is massive support. In that sense, even though we have had a bit of a dramatic kick off to the week, the reality is that we haven’t changed the overall attitude.

USD/JPY Video 07.05.19

With that being said, I suspect that this will be a buying opportunity as we continue to go higher. This market has been stubbornly bullish, regardless of what happens out there. Until the attitude changes, you simply cannot expect things to change pricewise. With that, I am bullish but mildly so as this is a market that has been struggling to pick up momentum. With that, I suspect that buying value is probably the best thing to do, but you’re going to need to be very patient to take advantage of what has been a relatively stable range bound market.

Please let us know what you think in the comments below