USD/JPY Price Forecast – US dollar struggles against Japanese yen to kick off the week

The US dollar has struggled a little bit against the Japanese yen during the trading session on Monday to kick off the week, as we approach a major downtrend line. When you look at the longer-term charts, there is a clear symmetrical triangle that we have been forming, and as we approached the top of that symmetrical triangle, the pair naturally had a bit of a negative reaction. At this point, I look at the ¥113 level as vital, and an area that we must overcome to continue the longer-term grind higher. Otherwise, I would anticipate that we are going to see plenty of volatility and choppiness going forward. Quite frankly, that is the overall common state for this pair as of late, and until we break out of the symmetrical triangle I am afraid that will continue to be the case.

A lot of the negativity will  stemmed from concerns about the Sino-American trade relations deteriorating, and the obvious trade war that we are about to enter. I believe at this point a lot of traders are starting to understand that this is going to be a little bit more serious than originally thought. At this point in time, I think a pullback makes a lot of sense, but I’m not exactly looking for a meltdown either. I anticipate that the ¥112 level should be rather supportive, and it’s at that area that I would start to look for signs of support that I could buy again. In general, I would keep my position size small and focus on small time frame positions until we can get above the ¥113 level.

USD/JPY Video 25.09.18