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

The US dollar rallied against the Japanese yen during trading on Tuesday, reaching as high as ¥111.30 during the European session before pulling back slightly. It looks as if there is going to be supported at the ¥111 level after the break out, so I think it’s time to start buying.
Christopher Lewis
USD/JPY daily chart, July 11, 2018

The US dollar has rallied against the Japanese yen during early trading on Tuesday, pulling back from the highs to reach down towards the ¥111 level again, an area that was previous resistance. If that level can hold, it makes sense that we would continue to go higher as it is previous resistance acting as support. I think that the market will continue to grind higher based upon more of a “risk on” type of environment, which of course this market is sensitive to. We had recently formed a “golden cross” on the daily chart, and now it looks like the longer-term traders are starting to get their way again. I recognize that there is a significant amount of resistance above at the ¥112.50 level, and of course the proverbial “wall of worry” that markets always have to climb anyways.

Short-term pullbacks should continue to offer buying opportunities, down to at least the ¥111 level, if not lower to the ¥110.50 level. I believe that fundamentals will come back into play, with the Federal Reserve and its interest rate hikes coming down the line lifting this pair of the longer-term as the Bank of Japan is nowhere near doing anything close to monetary policy tightening. That doesn’t mean that this is going to be an easy move higher, just that I think it’s what we will eventually see, so keep that in mind and keep your position size appropriate.

USD/JPY Video 11.07.18

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
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.
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.