USD/JPY Price Forecast – US dollar trading at supportThe US dollar broke down a little bit during the trading session against the Japanese yen, slicing through the ¥108 level which has been important more than once. The fact that we have broken this area does suggest that there is more downside pressure to come.
The US dollar broke down below the vital ¥108 level during trading on Thursday but continues to see buyers just below the crucial level. By doing so, it looks as if the market is ready to continue a bit lower and if we can break down below the lows of the Thursday candle stick, I suspect that we will then go looking towards the ¥107 level, perhaps even the ¥106 level. That being the case, I am a seller of rallies at this point and expect to see the ¥109 level continues offer major problems for the buyers.
USD/JPY Video 11.01.19
Remember, Jerome Powell has recently acquiesced to Wall Street, sounding a bit more dovish than previously thought, and therefore the US dollar will probably continue to struggle against many currencies around the world. However, I don’t know how much of a huge “risk on” situation this is going to be for markets in general, so I don’t necessarily expect to see this pair rise anyway. I think there are a lot of issues out there that traders are still concerned about, and as a result will more than likely continue to find the Japanese yen pick up a bit of value against most currencies. In fact, most pundits I speak to expect the Japanese yen to be one of the great beneficiaries of the early part of 2019. Beyond that, we have not wiped out that nasty looking black candle from last week which is the bare minimum I need to see for this market to look interesting to the upside.