USD/JPY Price Forecast – US dollar grinds sideways against yen

The US dollar has gone sideways during the trading session on Monday, as we continue to see a lot of noise in general. However, if we can break above the ¥112 level, then it’s likely that we could continue to go towards the ¥113.50 level. That of course is the bullish case, but ultimately it would take a significant amount of momentum building to send this market higher. If that is the case, expect a decent size explosion to the upside and could contain a lot of inertia.

USD/JPY Video 19.03.19

To the downside, if we break down below the 200 day EMA it’s very likely that we continue to go lower. At that point, it opens the door to the ¥110 level, which by extension if we can break down below there we will probably go down to the ¥108 level. With the Federal Reserve in focus this week, it’ll be interesting to see how people respond to the meeting minutes and whether or not the dot plot suggests if there are any interest rate hikes coming in 2019. This of course will have a major effect on what happens with the greenback, and then will determine a much more significant move than we have seen lately.

Quite frankly, this is essentially “dead money” at the moment as we need some type of impulsive candle to give us an idea as to where to put our money. The main take away is to simply let the market do what it will do, and follow.

Please let us know what you think in the comments below