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

The US dollar rallied significantly during the trading session on Wednesday, reaching towards the top of the shooting star from a few candles ago. I think at this point the ¥108 level will also offer resistance so I’m looking for a selling opportunity on short-term charts. It’s not until we break above the ¥108.75 level that I would be convinced of a turnaround. Quite frankly, we have broken below the 61.8% Fibonacci retracement level, it’s quite common to see a market reach back towards the 100% Fibonacci retracement level, in this case the ¥105 level.

USD/JPY Video 27.06.19

Ultimately, this is a market that is driven by risk appetite in the fact that the Federal Reserve is looking to cut interest rates also has a huge factor to play in this market. A break down below the hammer from the Tuesday session would send this market much lower, and kickoff that move I mentioned previously. All of that being said, if we can break above the ¥108.75 level, then markets will probably pick up another 100 pips or so. That being said, I’m not exactly sure what would drive that beyond the US/China trade relations going well.

I suspect that we are entering more of a “risk off” phase, and that tends to favor the Japanese yen overall. I think that is probably going to be the theme of the next several months, so I am going to continue to look for short-term selling opportunities in this pair.

Please let us know what you think in the comments below