USD/JPY Price Forecast – US dollar quiet against Japanese yen
The US dollar has held its own against the Japanese yen, as we continue to press against the downtrend line on the daily chart. However, with today being quadruple witching in the United States, as options expire there will be a lot of volatility in the marketplace. This will have money going back and forth through various funds, and of course crossing borders. With that in mind, I would be much more comfortable buying this pair after the day closes, and other words on Monday. At this point, I believe the market should try to go higher, but with that type of sudden and violent moves, it’s difficult to hang onto a trade going into the weekend. Beyond that, there of course a lot of headline risk out there, so at this point although I have an upward bias in this pair, I also recognize that there are a lot of issues out there that could continue to cause this market to be very difficult to hang onto.
If you were to get involved in the market, I would do so in a small size, as it is a market that is highly sensitive to the stock markets over time. That being the case, I’m very cautious about putting a lot of faith in moves at this point, but I do recognize that eventually we should get a little bit of clarity. Wait until after the options expiry on Friday and see where we are. If were above ¥113, I would be a buyer.