USD/JPY Price Forecast – US Dollar Sluggish Against Japanese YenThe US dollar is at the recent highs, looking very sluggish at this point. Quite frankly, it appears that the ¥110 level is a bit of a major barrier, and at this point it’s difficult to imagine breaking above there without some type of really good news coming into play.
The US dollar has initially tried to rally during the trading session on Wednesday, but as you can see there is a general malaise when it comes to this currency pair. Quite frankly, that should not be a surprise considering the time of the year and the fact that the markets are a bit skittish when it comes to the idea of the US/China trade situation, it makes quite a bit of sense that the pair would simply do nothing. Ultimately, I believe that the market will eventually try to break above the ¥110 level, but clearly, we aren’t ready to do so quite yet. If and when we do, then it opens up the door for a move to the ¥111 level, which is the scene of a major gap.
USD/JPY Video 19.12.19
To the downside, the market is very likely to continue to see a lot of support near the ¥108.50 level which I believe is the bottom of the range that we are going to be involved in. Ultimately, this is a market that I think continues to see a lot of choppy behavior, and quite frankly will put most traders to sleep unless of course we get some type of headline involving the US or China. We continue to see that at least the attitude of the global trade war has shifted, but the details are a bit underwhelming. I think the market simply doesn’t know what to do with this information right now, and this pair is a microcosm of that doubt
Please let us know what you think in the comments below