USD/JPY Price Forecast – US dollar show signs of life on Tuesday

The 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.
Christopher Lewis
USD/JPY daily chart, October 10, 2018

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.

USD/JPY Video 10.10.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US