USD/JPY Price Forecast – US dollar looking for support against Japanese yen

The US dollar initially fell during the trading session on Friday but found enough support to turn around and form a slightly bullish candle. That being said though, we have recently seen a lot of selling pressure and it’s very likely that we will continue to go much lower. In fact, now that we are below the 61.8% Fibonacci retracement level tells me that the market is probably going to try to wipe out the overall move to the upside, sending this market down to the ¥105 level.

USD/JPY Video 24.06.19

All things being equal though, I think that this market is likely to continue to drift lower not only because of the technical breakdown but also the fact that we still have problems between the United States and China, and of course concerns about global growth. If that’s going to be the case it’s very likely that the Japanese yen will continue to strengthen overall as we are seeing not only against the US dollar, but several other currencies out there. Adding more fuel to the fire in this pair is the fact that the Federal Reserve has shown itself to be dovish, and now it’s very likely that the US dollar started to drift lower against many other currencies, and when it’s loose monetary policy as the Japanese yen that really takes off to the upside. Rallies at this point are to be sold until we can break above the ¥108.75 level above.

Please let us know what you think in the comments below