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USD/JPY Price Forecast – US Dollar Has Wild Ride Against Japanese Yen

The US dollar initially fell rather hard against the Japanese yen during the trading session on Wednesday in reaction to the Iranian missile strikes in the Middle East. However, we have seen a complete turnaround in this shows exactly where the market wants to go going forward.
Christopher Lewis
USD/JPY Price Forecast - US Dollar Has Wild Ride Against Japanese Yen

The US dollar initially fell during the trading session on Wednesday as word got out that the Iranians had sent missiles towards US bases in Iraq. However, the damage was almost nonexistent, and there were no casualties. That being said, the market is very likely to continue seeing buyers based upon the fact that it seems as if both of the major participants are likely to come back down at this point. The Iranians have even stated so publicly, suggesting that they had performed a “slap in the face of America”, and had no interest in escalating from there. This brings the light the most obvious fact in this situation: the Iranians can’t take on the Americans directly. Because of this, markets have written higher prices for this pair.

USD/JPY Video 09.01.20

Now that the markets are starting to come down from that situation, we will probably continue to go back and forth in the overall range that we had been thin, so it would not surprise me at all to see this market to reach towards the ¥109.50 level. Whether or not we can break out might be a completely different situation, but the complete reversal during the trading session on Wednesday of course tells us that perhaps people are quite ready to hide for the longer term. We do have the jobs number coming out on Friday, so that may keep the market somewhat muted between now and then but it certainly shows that the market prefers the upside.

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