USD/JPY Price Forecast – US dollar pulls back slightly

The US dollar pulled back slightly during trading on Thursday, as the US dollar loss against most major currencies. The downward trend line above that I’ve been talking about seems to have come back into play again.
Christopher Lewis
USD/JPY daily chart, September 21, 2018

The US dollar rallied initially during early trading on Thursday but pulled back enough to give value hunters an attempt to pick up the pair at ¥112. The market looks likely to continue to struggle overall, because of the major downtrend line that is just above on the daily charts. I think that given enough time, we will probably continue to see major volatility in this pair. The never-ending saga between the Americans and the Chinese will continue to put bearish pressure on this market, but I do recognize that eventually something will have to give. Right now, it looks as if the market participants will continue to have to deal with a major amount of chopped, as the market simply doesn’t know where to go.

At this point, this is one of my least favorite pairs to trade, because it simply changes direction every couple of hours it seems. The volatility isn’t extreme though, because quite frankly it can’t go anywhere. If you are looking for micro movement, this will be your market. Otherwise, you will more than likely be better served trading the US dollar against other currencies presently. On a day were both the Euro in the Pound broke out, it may be just a little too much for the US dollar to overcome against the Japanese yen. Stock markets are rallying at the same time, so that does of course provide a little bit of support for this pair, but at the end of the day it still faces an uphill climb. Every 50 pips or so seems to be important.

USD/JPY Video 21.09.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US