USD/JPY Price Forecast – US Dollar Pulls Back Against The Japanese Yen

The US dollar initially tried to rally during the trading session on Thursday, but then failed again at the same resistance, that of course has caused significant problems previously. Overall, I believe that this market probably has a bit of a floor near the ¥108.50 level, just as the ¥110 level should offer a significant amount of resistance. If we were to break above there then the pair would go much higher, perhaps reaching towards the ¥111 level. That’s an area where there is a bit of a gap, so I think that would be the initial target. Above there, then the market could go looking towards the ¥112.50 level after that.

USD/JPY Video 20.12.19

If we were to break down below the ¥108.50 level, it’s very likely that the market should go down to the ¥108 level, but that seems to be very unlikely unless of course there is some type of negative headline out there that causes chaos. That negative headline would probably come in the form of negative headlines surrounding the US/China trade situation. The market probably continues to be very noisy in the short term though, as we are simply banging around during the holidays. Holiday trading isn’t exactly known for being exciting, so don’t be surprised at all if the market goes sideways in this range between now and the beginning of the year. All things being equal, the market is likely to see very little in the way of movement longer-term.

Please let us know what you think in the comments below