USD/JPY Price Forecast – US dollar rolls over for Monday

The US dollar broke down a bit during the trading session on Monday, as the greenback lost some of its luster. The fear that’s been in the market for some time has elevated the value of the greenback, but we are starting to see a reversal of its fortune. Because of this, I think that this pair, while it does follow a certain amount of risk appetite either up or down, could lag some of the other wrist sensitive pair’s. This is because the US dollar is being sold off against other currencies. If you wish to trade this market from a “risk on” perspective by shortening the Japanese yen, you will probably find it easier to do so against the Euro, the Pound, or the Aussie.

I believe that the ¥111 region will offer enough support to turn things around, but it’s going to be slow going. When you look at the longer-term charts, you can clearly see that there is a lot of noise out there, keeping this market under wraps. I think at this point, we should continue to see the market try to get back to the ¥111.50 level, but you’re going to need to be patient. Otherwise, if we break down below the ¥110.75 level, then we will almost certainly go down to the ¥110.50 level, followed by the psychologically and structurally crucial ¥110 level that has acted as a springboard recently. All in all, this is a market that I’m not overly impressed with, but if you are short-term scalper you may find some utility here.

USD/JPY Video 28.08.18