USD/JPY Price Forecast – US dollar running into resistance against Japanese yen

The US dollar has reached towards the ¥111.50 level, which is the beginning of significant resistance that extends all the way up to the ¥112 level. Once we break above there, then the market is very likely to take off to the upside with significant strength. This will probably coincide with stock markets breaking out, but it can’t be guaranteed.

USD/JPY Video 03.04.19

When I look at this pair, I recognize that this area is the top of the consolidation area that we are currently trading and, with the ¥110 level underneath being the floor. If we were to break down from here, I would anticipate that there should be a lot of support at the ¥110 level and would be surprised if we broke down below there. If we did, it would probably coincide with some type of global “risk off” situation. Remember, the Japanese yen is one of the few currencies that are considered to be even “safer” than the greenback. All things being equal though, I think we do pull back but only to try to build up enough momentum to break out. Once the S&P 500 and other stock markets around the world. If they start to take off to the upside that could lift this pair through what I think is considerable resistance above. I also have a downtrend line drawn on the chart, but I’m still debating whether it is crucial or not as I believe there’s much more horizontal support resistance at play. All things being equal, I’m bullish but recognize that we may have some work to do.

Please let us know what you think in the comments below