USD/JPY Price Forecast – US dollar rolls over against Japanese yen

The US dollar fell during the trading session on Thursday again, as the Japanese yen continues to strengthen. Ultimately, I think that the breakdown that we have seen recently is a very ominous sign to say the least.
Christopher Lewis
USD/JPY daily chart, December 28, 2018

The US dollar has fallen during the trading session on Thursday again, after shooting much higher during the day on Wednesday. The ¥111.50 level is resistance, and of course we have the 200 day EMA just above that should offer significant selling pressure. Now that we have broken down so massively as of late, I think that we will continue to fade the rallies, especially as there are a lot of concerns out there with global growth. Beyond that, the Federal Reserve looks to be a little bit more dovish than initially thought, and if that’s going to be the case it makes sense that the US dollar would fall against the Japanese Yen overall.

USD/JPY Video 28.12.18

The ¥110 level has caused a bit of support and created a bounce, but that’s not a huge surprise considering that it is such a large come around, psychologically significant number. I think that as we approach it again though, we will more than likely break through there in continue to go much lower, with an eye on the ¥108 level. I think that the market has found significant resistance at the ¥114.50 level yet again, and that this could be a preview as to what the early part of 2019 is going to look like, as this pair tends to move with risk appetite. If risk appetite globally picks up, typically this pair will rally. However, if it starts to fall off again that will put downward pressure in this market as the Japanese yen is a safety currency.

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