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

The US dollar has rallied a bit during the trading session on Friday as we continue to see a lot of noise when it comes to the financial markets. The risk appetite of traders has been demolished over the last several days, so it’s not a huge surprise that the Japanese yen got a bit of a bid. That being said it’s likely that the sellers will come back into the marketplace looking for safety again. There is a bit of short covering into the weekend. Ultimately, I think that a lot of people are concerned about having too much risk on one way or the other headed into the next couple of days as there are so many possibilities out there.

USD/JPY Video 19.08.19

The US/China trade relations continue to sour, so it makes sense that we may see a bit of a bid for the yen. Beyond that, we also have to worry about the situation in Hong Kong, so one would think that there is the possibility of Asian traders buying the Japanese yen for safety at the open on Monday as well. That being said, I’m not necessarily going to be jumping into the market to simply short this pair, I need to see action at a resistance barrier which I see in the form of the ¥107 level. Ultimately, this is a pair that should continue to find plenty of sellers so I have no interest in buying at this point.

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