USD/JPY Price Forecast – US Dollar Testing SupportThe US dollar has pulled back a bit during the trading session on Monday, reaching towards the ¥108.50 level. This is an area that of course will attract a certain amount of attention due to the fact that it is a large, round, midcentury figure. Beyond that, we have several technical factors here as well.
The US dollar has pulled back just a bit against the Japanese yen during the trading session on Monday as we continue to see this pair be influenced by the US/China trade situation. At this point, the market will continue to see a lot of interest, and quite frankly all is going to do is take a bit of good news coming out of the US/China trade situation to turn things back around. Otherwise, if the market gets bad news out of the US/China situation, then we could break down towards the ¥108 level, possibly even the ¥107.50 level.
USD/JPY Video 10.12.19
Looking at this choppiness, it makes sense that short-term trading should be the way going forward, because quite frankly until we get some type of resolution to the US/China trade problems, this market will probably continue to be somewhat tentative. Looking to the upside, the ¥110 level should be massive resistance and if we can break above there then we could continue to go higher. Until then we will continue to chop around in this market in trying to make some type of headway when it comes to a bigger move. The market has essentially been in a bit of a “holding pattern” for a while, with more of an upward proclivity than anything else. All things being equal, this is a market that is trying to break out, but quite frankly need some help from the sidelines in the form of good news.
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