USD/JPY Price Forecast – US dollar sideways against yen

The US dollar has been consolidating against the Japanese yen for some time. Because of this, it makes sense that we would continue to see more of the same. Quite frankly, the US dollar has been in focus quite a bit lately due to the US/Chinese trade spat, and of course this pair is influenced by that. Beyond that, the market has a lot to worry about and emerging markets, but at the same time it’s likely that the pair will continue to follow the S&P 500 and other stock markets around the world. I believe that the ¥112.50 level above will continue to be an area that coincides with a lot of resistance. If we can break above that level, then I think the USD/JPY pair goes looking towards the ¥114 level, and then eventually the ¥115 level.

I think that there is massive support below though, and it does seem to have more of an upward proclivity over the last several months. Ultimately, we have been in a large symmetrical triangle for some time, and I don’t know that we can break out of it quite yet. Given enough time, I think that the ¥111 level will offer a bit of a floor and buying the dips should continue to work overall as the US dollar gain strength against many other currencies, but the Japanese yen being a safety currency does slow the ascent of this pair overall. If you’re going to buy the US dollar, that will probably be better currencies as far as momentum is concerned.

USD/JPY Video 18.09.18