USD/JPY Price Forecast – US Dollar Goes Back and Forth Against Yen

The US dollar has gone back and forth during the course of the trading session on Monday as we are a bit over stretched at this point. The ¥114 level is an area that will continue to be important, as the longer-term charts have shown quite a bit of a proclivity to offer resistance in this area. With that in mind, I think that we are probably due some type of pullback, but I do not necessarily think that it is going to be a change in the overall trend. Underneath, I see the ¥112.50 level as a potential area of interest, and then of course the 50 day EMA underneath there offering support.

USD/JPY Video 19.10.21

When you look at this chart, you can see just how parabolic it has been, so even though it is a bit difficult to be a buyer up at these levels, the reality is you simply cannot short this market. With that being the case, it is a simple matter of “buying the dips” if and when we get that opportunity. Because of this, I think that you need to be very patient, and take advantage of any opportunities that present themselves.

However, if we turn around a break above the ¥115 level it would clear for a longer-term “buy-and-hold” type of situation, and a complete turnaround in the overall long-term outlook for this market. With that in mind, we could see the beginning of something rather long-term and bullish, but right now we probably have a lot of noise. With that in mind, keep your position size relatively small, and pay close attention to whether or not we can clear that ¥115 level.

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