USD/JPY Price Forecast – US dollar quiet against yen on Monday

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Updated: Jul 31, 2018, 04:49 UTC

The US dollar has been rather quiet against the Japanese yen during the day on Monday, as we continue to hover around the ¥111 level. The market is almost assuredly waiting on the Federal Reserve later this week, and perhaps even some of the other central banks and market moving events that we have on a busy calendar.

I would not expect much out of this pair in the short-term, because we have so much in the way of news coming this week. Not the least of which of course is the jobs number on Friday coming out of America. Because of this, I think that this market will remain very range bound, going back and forth between the ¥111.50 level, and the ¥110.50 level. I would employ some type of range bound short-term trading system if you feel the need to trade the USD/JPY pair, because it is between two stringent areas.

I believe that longer-term, the market will probably try to go higher from here, but we need some type of good news to push the market higher. What I do find concerning is that the GBP print, at 4.1% out of America wasn’t enough to lift this market significantly. Although it was basically in line, that should be enough to make people begin to wonder how many interest rates the Federal Reserve will be forced to do. That should be good for the US dollar, but so far it isn’t. Beyond that, the Bank of Japan has suggested three times that they are willing to buy as many Japanese Government Bonds as necessary. In other words, extraordinarily loose monetary policy. The fact that we have not taken off tells me that the market is probably focusing on a lot of geopolitical concerns.

USD/JPY Video 31.07.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.