USD/JPY Price Forecast – US dollar pulls back to find buyers

The US dollar fell initially during the trading session on Friday but found enough support at the bottom of that gap from the opening of the week to turn things around. At this point it looks as if the market doesn’t really know what to do but the one thing that does seem somewhat obvious is that there are buyers underneath. That being said, there is a lot of resistance above based upon the couple of shooting stars from the beginning of the week. Ultimately, this shows a lot of confusion.

USD/JPY Video 17.06.19

Confusion is something that will keep this market choppy and of course you should be paying attention to the overall risk attitude of markets. This pair does tend to follow right along with whatever is happening in the stock markets worldwide, with a special attraction to the S&P 500. If it rallies, this pair tends to do the same thing, but then again if the S&P 500 rolls over, so will this pair.

I think there are couple of different levels to be paying attention to. If we can break above the top of the Tuesday candle stick then the market will almost certainly try to take out the wipeout the candle that extends all the way to the ¥109.60 level. Alternately, if we break down below the 61.8% Fibonacci retracement level, then it opens up the door down to the ¥105 region. Ultimately, pay attention to the risk appetite of the world markets, and watch how this follows.

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