USD/JPY Price Forecast – US Dollar Stabilizes Against Japanese Yen

The US dollar has rallied slightly against the Japanese yen during trading on Thursday, in what was a relatively quiet day. Ultimately, this is a market that should continue to see a lot of choppiness, but at this point I think it makes quite a bit of sense to simply consolidate in the same range that we have been in. That range is clearly defined by the 108.33 level on the bottom and the 109.60 level on the top. If we could somehow break above the 110 level, then it should send this market much higher and I think longer-term that might be the move. However, that level has been extraordinarily stingy, so it’s probably going to take some type of strong economic announcement or a major “risk on” type of move to make it happen.

USD/JPY Video 03.01.20

To the downside, if we can break down below the 108 level it’s likely that we will fall much further. I don’t expect to see that happen anytime soon though, so at this point it’s likely that we will have more of the same, simply bouncing around in this rectangle that we are trying to form. When trading these types of markets, one has to assume that “they will stay the same until they don’t.” I realize that’s not necessarily insightful, but you would be amazed at how many traders forget that. At this point, I think there’s more of an upward bias but clearly we need some type of catalyst to get moving higher.

Please let us know what you think in the comments below