USD/JPY Price Forecast – US dollar pulls back on Thursday

The US dollar has pulled back significantly during the day on Thursday, but quite frankly it was overbought and it needed a bit of a breather. I think at this point we will continue to see a lot of buying near the ¥114 level. I think that’s an area that will attract a lot of attention, but quite frankly it wouldn’t surprise me at all to see this market bounce from here and go looking towards the ¥114.50 level again. We have the jobs number coming out during the Friday session, and that will of course be crucial. I think that it will have the usual massive effect on this pair, and the better the number, the better off this pair will be.

This is a market that tends to be very volatile during these announcements, so please don’t forget that. I think the ¥114.50 level is going to be a bit difficult to overcome, as it is the beginning of massive resistance. However, I think it’s only a matter of time before we do get above that level and go looking towards the ¥115 level. A break above that level would send this market much higher. That in fact would be a signal that we are reaching the next leg higher. Ultimately, I believe that we will continue to see longer-term money flow into this pair and push higher. If we break down below the ¥114 level, then I think the ¥113.50 level would be the next support level.

USD/JPY Video 05.10.18