USD/JPY Price Forecast – US dollar pulls back

The US dollar has gone back and forth during the trading session on Thursday against the Japanese yen but it seems as if the pullback is starting to stick a little bit as the ¥108 level has been a bit of a magnet for price. Just below there we have the 61.8% Fibonacci retracement level, which I think also offers plenty of support. With that being the case, it’s very likely that the market will bounce a bit from here, but the jobs number of course can change everything. With that in mind I’m watching a couple of levels.

USD/JPY Video 07.06.19

If we were to break down below the 107.70 level, that would be very negative, and I think at this point it probably opens up the door down to the 105 handle underneath as typically when you give up the 61.8% Fibonacci retracement level, a lot of selling ensues. However, if we turn on a break above the highs of the last couple of sessions, then we probably go looking towards the ¥109 level, possibly even the ¥109.70 level.

Pay attention to stock markets, and of course the jobs number, because the better they are typically the better that this market does. I do believe that we are at an inflection point, so the ¥108 level being “fair value” is how you have to look at this chart in general. However, once we break in one direction or the other, the market should suddenly shift towards the previously mentioned targets going forward.

Please let us know what you think in the comments below