USD/JPY Price Forecast – US dollar rallies against Japanese yen

The USD/JPY pair rallied a bit during the session on Thursday, but quite frankly it isn’t much to be concerned with. The market continues to find a lot of support below at the 110 level, with the 111.5 level offering resistance all the way to the 112 level. The market will probably find sellers once we get there, but it is entirely possible that it will be more of the same, simple bouncing back and forth. Because of this, it’s very likely that we will consider this an opportunity to short this market, but I would not expect much in the way of movement. Quite frankly, the US dollar/Japanese yen pair is one of the least interesting pairs that is trading right now, but certainly there’s probably more pressure to the downside than up.

USD/JPY Video 12.04.19

Speaking of the downside, if the 110 level were to be broken it could open the door to the 108 level, but I have doubt that’s going to happen in the short term. If it did, it would probably coincide with some type of major financial meltdown, which of course would be headline news everywhere and we would all know about it. With everything that’s going on we could get some type of major move like that but quite frankly there’s nothing on the chart suggesting that it’s imminent. To the upside though, if we were to break above the 112 level, we then start to go looking towards the 113.50 level which would be a very strong move probably coinciding with a breakout in the S&P 500.

Please let us know what you think in the comments below