USD/JPY Price Forecast – US dollar pulls back against Japanese yenThe US dollar pulled back a bit during the trading session on Thursday as we continue to see softness in the greenback. The ¥110 level continues to be important and should offer support.
The US dollar has pulled back a bit during the trading session again on Thursday, reaching towards the ¥110 level, an area that is major support. The moving averages above of course cause some noise in general, right around the ¥111 level. Ultimately, the market should continue to go higher if we can get some type of “risk on move” in the stock market, but the greenback is going to be a bit softer than it was before after the Federal Reserve did everything it could to knock down interest rate expectations. In other words, this is one of the few places the US dollar may strengthen against other currencies, but it won’t exactly rip to the upside.
USD/JPY Video 22.03.19
To the downside, if we do break the ¥110 level, the market could very well drop down to the ¥108.50 level, followed by the ¥108 level. It’s interesting that we continue to see a lot of volatility, and I think this is a bit of a proxy for what’s going on in stock markets around the world. With this, it’ll be interesting to see what happens next but I would allow the market to tell us whether or not it can break down initially before putting money to work. If we do get that breakdown, then I wouldn’t hesitate to short the market. As far as buying is concerned I would like to see the market break above the top of the candle stick for the trading session that is forming on Thursday.
Please let us know what you think in the comments below