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Christopher Lewis
USD/JPY daily chart, August 09, 2019

The US dollar has fallen a bit during the trading session on Thursday, but then turned around to show signs of stability again at the 106 young level. At this point, I believe that the market is very likely to try to bounce from here but I also see that there is a lot of resistance above, especially near the ¥170 level. Overall, I believe that this is a market that will continue to find quite a bit of choppiness and trouble, because quite frankly it is a scenario that follows the overall attitude of risk appetite in general. Ultimately, I do believe that we go down to the ¥105 level over the longer-term, but it’s going to take some time to get there.

USD/JPY Video 08.08.19

Keep in mind that the S&P 500 does tend to move this pair, as it is an excellent proxy for risk appetite in general. Typically, if this market is rising, it’s a sign that people are willing to take advantage of risk appetite or at least risk assets out there. With this, I think that it makes sense that we not only see this pair rally, but we also see the S&P 500 rally a bit as well before running into some trouble. There are a lot of concerns out there when it comes to risk appetite and central banks, so I think at this point it’s probably going to continue to be a bit of a hostage to not only that, but the US/China trade relations issues which of course are front and center.

Please let us know what you think in the comments below

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