USD/JPY Price Forecast – US Dollar Sideways Against Yen Again

The US dollar has initially rally during the trading session on Friday but has also given up a bit of those gains. Quite frankly, the range is almost nothing and therefore I am very neutral on this pair. Both of these are safety currencies and I think that has a lot to do with why we cannot get anywhere. With that being the case, I believe it is only a matter of time before we have to make a breakout, but I look at the overall area as trading between ¥109 level, and of course the ¥107 level underneath. In other words, we are in a 200 PIP range, which can be thought of very similarly to a rectangle.

USD/JPY Video 27.04.20

For what it is worth, if you are looking at the chart in terms of the line chart, you can see that the last couple of highs have been lower, and this suggests that there should see a lot of negativity given enough time, but we need to break down below the ¥107 level for that to happen. In the meantime, traders are comfortable buying both of these currencies so therefore this pair has nowhere to go. If we do break out of this 200 PIP range, then it is only a matter of projecting the 200 pips from the breakout. In other words, to the downside we could go as low as the ¥105 level, just as a move above could send this market looking towards the ¥111 level. That being said, it does not look like that is going to happen in the short term so more often than not I take a look at this chart and simply continue looking for trades in other markets.