USD/JPY Price Forecast – US Dollar Gives Up Early Gains Against Yen

If we do break down below the lows of the trading session on Wednesday, then the bottom will probably fall out and I assume we would go looking towards the ¥105 level after that. At this point, the market should continue to see a lot of volatility, and as this pair is still highly sensitive to the economic data out there and of course overall sentiment, the trajectory looks to be lower given enough time. With over 22 million jobs lost in the United States in the last month, it’s certainly a bleak picture out there.

USD/JPY Video 17.04.20

Pay attention to the stock market, because it will make quite a bit of difference as to where this market goes. Ultimately, this is a market that I think continues to see a lot of noise but clearly if we break down below the ¥107 level, the bottom will fall out and we should continue to go much lower. I think if we do break to the upside, the ¥109 level is probably going to act as a ceiling in the short term, perhaps even longer term, if the economic situation doesn’t improve.

With the world economy stopping, the only thing that’s keeping this pair up is the fact that the US dollar is part of the equation. After all, the US dollar does attract a certain amount of attention due to the fact that there are US treasuries out there waiting to be bought. At this point, I am bearish but probably need to see a short-term bounce or a breakthrough that ¥107 level to get aggressive.