USD/JPY Price Forecast – US dollar looking for support

The US dollar fell slightly against the trading session to kick off Monday, but then turned around to show signs of strength again. We are in an up trending channel, and as you can see I also have support levels marked on the chart near the ¥112 level. I think at this point, there are plenty of reasons to believe that the buyers will come back in and pick this market up if it falls a bit, as the US is raising interest rates at a time when the Bank of Japan is doing the opposite, keeping monetary policy very loose.

USD/JPY Video 20.11.18

I also see a significant amount of resistance above though, and that of course is going to weigh upon the market as well. Because of this, I think that the market above is struggling to build up the momentum to finally break above there. If we do, that would be an extraordinarily bullish sign, perhaps sending the market towards the ¥117.50 level, and then eventually the ¥120 level. Ultimately, if we break down below the 100 level ¥0.50 level that would be the major support underneath giving way, and I think at that point it’s likely that the market would be looking towards the ¥110 level which has been important more than once. Ultimately, the market is bullish longer-term, so I do like buying dips when giving an opportunity based upon supportive candles and supportive actions. Looking at this market, I think it’s not until we break down below the ¥111.50 level that you can consider shorting this market.