USD/JPY Price Forecast – US dollar reaching massive resistance against yenThe US dollar continues to go sideways overall against the Japanese yen, as we head into the Easter holiday. At this point, the lack of liquidity would have made the candlestick on Friday less than impressive, but quite frankly if you look at the rest of the week, it was much the same.
The US dollar has pulled back a bit against the Japanese yen during the week, closing out Friday on the back foot. At this point though, it’s very likely that we continue to see a lackluster performance as this pair tends to be similar to the S&P 500. What I mean by this is that typically if the S&P 500 rallies, this pair will as well due to risk appetite. As we currently see the S&P 500 struggling just above the 2900 level, it looks eerily similar to the ¥112 level in this pair. At this point in time the two tend to move in the same direction, so there’s no need to fight the correlation.
USD/JPY Video 22.04.19
On a pullback I believe that there is plenty of support at the ¥111.50 level, and that of course the moving averages at lower levels including the ¥111 level. To the upside, if we can break above the ¥112.25 level on a daily close, then I think will go looking towards the ¥113.50 level. In general, this is a market that should continue to go higher in my estimation, but if we were to break down below the moving averages that I have on the chart, then obviously we could drop down to find even more support at the ¥110 level. Looking at this chart, if we were to break down below the ¥110 level, then the ¥109 level and finally the ¥180 level would both be targeted.
Please let us know what you think in the comments below