USD/JPY Price Forecast – US dollar rallies into major resistance

The US dollar has rallied significantly on Friday, smashing into the ¥112 level. That’s an area that has been significant before, so bouncing back towards it has been a very good sign. We’ve rolled over a little bit as I record this, but it also looks as if we are trying to break out still. If we can clear the ¥112 level, the market could go much higher, perhaps to the ¥113 level. I think that a lot of people are concerned in general about the global market conditions, so this could be a very erratic pair to be in.

All things being equal, this will continue to move upon trade war situation as between the United States and China, as the two economies of course have such a huge influence on global trade in this pair of course is very sensitive to global trade in and of itself. This is also a risk appetite pair, so all things being equal I think we continue to see a lot of choppy action but it certainly seems as if the buyers are in control. At this point, I think the next target would be the ¥112.50 level, followed by the ¥113 level. If we do break down from here, I think that the market is probably going to go down to the ¥111.50 level. I would be very cautious about this market, it looks bullish yet nervous to say the least.

USD/JPY Video 17.09.18