USD/JPY Price Forecast – US dollar pulls back against Japanese yen

The US dollar broke down initially during the trading session on Thursday against the Japanese yen but found support underneath the ¥108 level to show signs of life again. At this point, it’s very likely that the market will continue to find buyers on these dips, so I do like the idea of going long. Ultimately, this pair will rise and fall with risk appetite, so it’ll be interesting to see what happens in the stock markets. If the stock markets rally significantly, then this should rally right along.

USD/JPY Video 12.07.19

At the underneath, I suspect that there is a lot of support not only at the ¥108 level, but also the 61.8% Fibonacci retracement level underneath. At this point, I suspect that will be the “bottom” of the market, so I do like the idea of picking this market to the upside. It’s not until we close below the 61.8% Fibonacci retracement level that I would be a seller. At this point, I anticipate that although the 50 day EMA has offered resistance, we will eventually break through it. With the Federal Reserve on the sidelines and in fact looking very likely to cut interest rates, that should juice the stock markets higher, which should send this market to the upside as well.

Looking at this chart, I believe that the ¥109.70 level will be your target, and therefore it may take a few days to get there. Ultimately, this is a market that is primed to continue to go higher, and therefore patience may be needed, but look for value on these short-term dips.

Please let us know what you think in the comments below