USD/JPY Price Forecast – US dollar resilient on Tuesday

The US dollar has been noisy against the Japanese yen during trading on Tuesday as global markets continue to react to the latest headlines from various trade officials. It looks as if the trade war between the Chinese and Americans will continue, and only escalate from here. However, the market looks as if it is trying to shrug a lot of that bad news off. If that’s the case, we could see this market remains somewhat buoyant. If we can break above the ¥111.60 level, then it’s likely that we could go looking towards the ¥112 level above.

A break below the ¥111 level would be somewhat interesting as it could leave this market down to the ¥110.50 level, and then possibly even the ¥110 level. Ultimately, this is a market that will remain very noisy as it is sensitive to global trade and of course global risk. With all of the headlines around the world, it’s hard to imagine that this pair will have an easy go of it in this type of environment. We have the situation between the Europeans and the British, the Chinese and the Americans, and now possibly the Americans and the Japanese, although that seems to be much less of an issue than the others. I believe in buying this pair on dips, but I recognize that it is going to be very noisy. Every 50 pips or so seems to be an area of technical importance. Because of that, I believe that we continue to trade in a very short term manner.

USD/JPY Video 12.09.18