USD/JPY Price Forecast – US Dollar Looking for a Bottom Against Yen

The US dollar has pulled back a bit during the trading session on Tuesday as we continue to test the ¥107 level. Ultimately, this is a market that I think will eventually have to make up its mind as to whether or not it is going to break down or not, but from a longer-term standpoint I also believe that we could be looking at a scenario where the market is trying to carve out a larger consolidation area. I believe that ¥107 is crucial, and therefore could offer a significant amount of support, but even if we break down below there then I think we find support below at the ¥105 level. At this point, the market looks as if it is trying to figure out where the bottom part of the range is going to be but it’s obvious that the ¥112 level is most certainly massive resistance.

USD/JPY Video 15.04.20

Looking at the chart, it appears that we will be making a relatively significant statement over the next couple of days as to where we are going, due to the ¥107 level being crucial. If the market was to break down below the ¥107 level, then I would be short of this market for a couple of handles. On the other hand, if we bounce from here, we could see a move towards the ¥109 level rather quickly. I think this is simply a matter of the market trying to figure out the risk range in this current environment which of course is a completely fluid situation. Ultimately, this is a market that has a handful of major levels that we should pay attention to.