USD/JPY Price Forecast – US dollar show signs of life on TuesdayThe US dollar chop around during the day on Tuesday, showing signs at the ¥113 level. This is an area that has been important more than once, and I think at this point we are starting to see a bit of a revival of the uptrend.
The US dollar initially broke below the ¥113 level to kick off the day but turned around rather stringently to show signs of life again. Because of this, it’s very likely that we will continue to see the uptrend continued, reaching towards the ¥114 level. This is an area that has been important more than once, and I think that given enough time we could continue to go higher. Overall, I believe that the ¥114 level will be targeted, then of course the ¥114.50 level above. By clearing that level, we could then make a serious attack to the ¥115 level.
I still believe in buying pullbacks, but I would also point out that this pair is highly sensitive to overall risk appetite, so pay attention to that as well. Stock markets could lead the way. Overall, I believe that interest rate differential should also come into play, so I believe that given enough time we will continue to find a reason to rally. If we can get some type of solution to the Sino-American trade war, that will only exacerbate the move to the upside and could lead to a serious break out. Looking at the charts, I think there is more than enough support underneath to continue to go higher. If we did break down to a fresh, new low, I believe that the ¥112.50 level would be the next major support level that could offer a buying opportunity.