USD/JPY Price Forecast – US dollar surges against Japanese yen after initial selloff

The US dollar initially gapped lower based upon fears of what’s going on in Turkey, but as it looks like the Turks may back down a bit, this has given the markets a little bit of breathing room to rally after initially selling off drastically. As I record this, we are approaching the ¥111 level, an area that I think is going to be difficult to break above, but if we do then that would send the market looking towards the ¥112 level. Overall, I believe that the market should continue to grind higher over the longer-term, but we need plenty of good news. This is the first thing to lift the markets lately, but perhaps an easing of the trade war tensions will be needed next. Overall, I think we are still range bound, and it makes sense that we bounced where we did as it was close to the ¥110 level, an area that of course has a certain amount of psychological importance and structural importance for that matter.

If we were to break down below the ¥110 level, this market could unwind rather drastically, opening up the door to ¥109 rather quickly. Otherwise, I think the ¥112 level will be targeted, but we may need yet another catalyst to push the market towards that level. Longer-term traders are probably more apt to be interested in this market that short-term traders, as the volatility of course will be very difficult to deal with.

USD/JPY Video 14.08.18