USD/JPY Price Forecast – US dollar grinds higher against yenThe US dollar rose slightly against the Japanese yen during trading on Wednesday and early hours. However, we still have the resistive ¥114 level just above, and I think it will continue to play a factor in this market.
The US dollar continues to grind higher against the Japanese yen during Wednesday trading, but I think the keyword here is going to be “grind.” John that, we have the jobs number coming out on Friday so it’s likely that we see a bit of lackluster performance in the currency markets for the next couple of sessions. I think that it’s only a matter time before we break above the ¥114 level though, so I’m not interested in shorting. Quite frankly, I would like to see a pullback to ¥113 in order to get long again. However, we may or may not get that opportunity so don’t be surprised if we find ourselves buying at higher levels.
Looking at the longer-term charts, I see that the ¥114.50 level has been significant resistance extending all the way to the ¥115 level after that. I think we have a real fight on our hands and the so-called “easy money” has already been made to. If we can finally break above the ¥115 level, and I do think we have that happen eventually, this pair should take off quite rapidly. In the meantime, there are a lot of concerns around the world that will continue to throw this pair around as it is somewhat sensitive to the US/China trade relations. Ultimately, this pair continues to be a “buy on the dips” type of market, and that’s not worth fighting that this point. The interest rate differential continues to favor the United States, so it makes perfect sense.