USD/JPY Price Forecast – US dollar rallies to kick off the week

The US dollar has rallied a bit during trading on Monday, reaching towards the ¥112.50 level as the Americans open up trading on Wall Street. A break above there should send this market looking towards ¥113 level again, an area that has been resistance. Breaking above that level opens the door to the ¥114.50 level that has been so important as far as resistance is concerned recently. Remember, this is a wrist sensitive pair, so the fact that the S&P 500 is taken out to the upside during the day certainly helps as well.

USD/JPY Video 30.10.18

We are still in and uptrend, and with rising interest rates in the United States it makes sense that the US dollar might be the one currency they can do well against the Japanese yen, or at least “less bad” in a risk adverse scenario, assuming that we turn right back around as we have been doing. It is because of this that if you are looking to short the yen, this is probably the best place to do it. If we can break above the ¥114.50 level, then the market will probably go looking towards ¥115 level above which of course is resistance. On a break down below the candle on Friday, I expect a bit of a “reset” closer to the ¥111 level. Regardless, expect volatility and stick to short-term charts but I do favor the upside overall as the market has shown it’s resiliency.