USD/JPY Price Forecast – US dollar pulls back

The US dollar pulled back somewhat during the day on Thursday, giving back the gains that had been so strong on Wednesday. However, I do see a significant amount of support underneath at the ¥111 level, so I think this is a short-term phenomenon at best. Overall, I believe that the market will continue to see a lot of volatility, and as I have been saying, I think that there is a lot of interest paid to at the 50 levels, such as ¥111, ¥111.50, and so on. At this point, there is plenty of support between here and the ¥111 level to lift the market, so I think that we will continue to see buying pressure.

If we did break down below the ¥111 level, that could be an extraordinarily strong sign, perhaps sending this market to fresh, new highs. Overall, I believe that this market will continue to follow risk appetite, which has certainly gotten a lot stronger over the last several days. With the GDP numbers coming out of the United States so hot, that should foretell more demand for crude oil, and 1 million barrels a day being taken off line due to sanctions against the Iranian drillers should also continue to put upward pressure.

The US dollar has been strengthening slightly during the trading session against other currencies though, so this may help as well, although at the end of the day this is a risk appetite influence market.

USD/JPY Video 31.08.18