USD/JPY Price Forecast – US Dollar Rallies to Kickoff Week

The US dollar rallied a bit during the trading session on Monday, as traders came back from the weekend and started trading in the same range that we had been in. At this point, it looks as if the ¥107 level is going to offer support, just as the ¥109 level above is massive resistance. Ultimately, this is a market that seems to be stuck and is trying to figure out where to go next. At this point, I believe that the market is trying to figure out risk appetite, as it tends to go up and down with risk appetite in general.

USD/JPY Video 21.04.20

If we were to break down below the ¥107 level, it’s likely that the market will go looking towards the ¥105 level underneath, which has been important more than once. Ultimately, this is a market that should be thought of as being in a 200 point range, perhaps something along the lines of a rectangle. When you break out, you are looking for a 200 point gain or loss. To the upside, if we break above the ¥109 level, then it’s likely that we go looking towards the ¥111 level, which is at the downtrend line from a longer-term trading. All things being equal, this is a market that looks very likely to continue to be very choppy, as we have absolutely no clarity when it comes to where we are going. All things being equal, this is a market that is going to continue to be very noisy to say the least.