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

The US dollar has rallied a bit during the Monday session as it looks like more of a “risk on” situation is presenting itself. The pair tends to move right along with overall risk appetite, and quite often the S&P 500 will move in the same general way that this pair does. I think at this point, you can look at the uptrend line underneath as offering significant support, the ¥112 level as offering significant support, and then the 200 day EMA which is just below the uptrend line as well. Because of this, I like buying the USD/JPY pair on short-term pullbacks, because I think that the resistance above is going to take a lot to break through.

USD/JPY Video 27.11.18

The resistance barrier above is the ¥114.50 level which extends to the ¥115 level. I believe it will take several attempts to break through there, so it’s not a surprise that we have had to pull back to build up momentum. I think that if you can be patient enough to wait for dips to present value, this should continue to be a good market for you. However, if we were to break down below the ¥111.50 level, then the market could break down rather significantly, perhaps down to the ¥110 level, possibly even the ¥108 level after that. That would coincide with some type of “risk off” move, which quite frankly it wouldn’t surprise me to see one. However, from a technical analysis standpoint it’s obvious that there are buyers just below.