USD/JPY Price Forecast – US dollar sideways against Japanese yen

The US dollar when sideways against Japanese yen for the most part during the trading session on Monday. At this point, it looks like the market is trying to figure out what is going to do about the US/China trade situation.
Christopher Lewis
USD/JPY daily chart, May 21, 2019

The US dollar has gone back and forth during the trading session on Monday, as we continue to wonder what’s going to happen between the Americans and the Chinese. Ultimately, we are starting to see both of these countries verbally bash each other from across the Pacific Ocean, so it’s difficult to get overly bullish on risk appetite in this scenario. However, we do see risk assets overall trying to show signs of resiliency, so that’s something that should not be ignored. At this point, I am more bullish than bearish, but I also recognize that the political landscape is a bit of a minefield. With that in mind, it’s likely that we will continue to see a lot of volatility and choppiness, but we are just above a major support level.

USD/JPY Video 21.05.19

I believe that the support level starts at roughly ¥109.70 and extends all the way down to the ¥109 level. That of course is a good sign, and therefore I think that it’s only a matter time before the buyers come back. I look for support of short-term candles to take advantage of but I’m not necessarily looking for an explosive move to the upside. I do believe that eventually we fill the gap at the ¥111 level, but it’s going to take some time to get there. With that in mind, I am cautiously optimistic but I’m also planning on being very patient and waiting on the move to play out is crucial in order to be successful trading this market.

Please let us know what you think in the comments below

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

Top Promotions

Top Brokers

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.
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.