USD/JPY Price Forecast – US dollar pulls back

The US dollar pulled back against the Japanese yen during trading on Thursday, as we continue to struggle to break above the ¥112 level with any great momentum.
Christopher Lewis
USD/JPY daily chart, April 19, 2019

The US dollar broke down a bit during the trading session on Thursday but continues to see a lot of support underneath. With that being the case it’s very likely that we will continue to see buyers of these dips, but quite frankly we can’t seem to go anywhere. With a major bank holiday on Friday, it doesn’t look like that’s going to happen in the next 24 hours either. Simply put, this essentially is what I would call “dead money.”

USD/JPY Video 19.04.19

If we can break above the ¥112.25 level, it’s possible that we may see this move work towards the ¥113.50 level above which is a major selling point. That being said, we are currently at an area that had seen a lot of selling in the past so it makes sense we are a bit hesitant to go any higher. To the downside, we have plenty of support at the ¥111.50 level, so it’s difficult to get overly aggressive in one direction or another.

The US dollar moves against the Japanese yen due to the bond markets and the stock markets, and since they will be closed during the Friday session there is no trade to be had here. If you are looking to throw money away you can trade this pair, but quite frankly if we couldn’t get it done during the normal hours of trading during the week, it’s hard to imagine that anything sustainable will happen on Friday. With that being said we need some type of catalyst to move this market, which will probably come from the S&P 500 eventually. We are in the middle of earnings season after all.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US