USD/JPY Price Forecast – US dollar slightly positive against Japanese yenThe US dollar rallied ever so slightly during the trading session on Monday, as we continue to test a major round figure. It’s the top of a consolidation area and the scene of the 50 day EMA.
The US dollar has rallied a bit during the trading session on Monday, hanging about the ¥107 level. Ultimately, this is a market that will continue to be very noisy, as it is so sensitive to risk appetite in general. Ultimately, this is a market that will move up and down with things such as the stock market and of course against bonds. At this point in time there seems to be a lot of concern out there and I do think that it’s only a matter time before we get enough trouble out there to throw this market around, and I suspect that the path lower is probably going to be easier than the path higher. With that being the case I think that it is very likely to be a noisy couple of weeks as volume comes back from summer.
USD/JPY Video 10.09.19
To the downside, the ¥105 level is the bottom of consolidation, and the ¥108 level above is the next resistance barrier. This is a market that continues to react to the US/China trade negotiations, and the overall geopolitical situation. At this point in time I suspect that all we need is one Tweet or one errant headline to send this market right back down. That being the case though, it’s going to be very difficult to hang onto a trade in either direction as the volatility is going to continue to be nauseating. Quite frankly, I’m looking for negative news to push this market back down towards the ¥105 level but one only can guess at this point.
Please let us know what you think in the comments below