USD/JPY Price Forecast – US dollar tries to rally

The US dollar rallied a bit during the trading session on Thursday, breaking above the ¥111.50 level. Ultimately, the market looks very likely to continue to be volatile and choppy, but it looks likely that we are going to continue to attempt to break out to the upside. The ¥112 level is of course an area where we have seen a lot of selling, but if we can break above that area on a daily close, it’s very likely that we could continue to go to ¥113.50 above, an area where we had seen the lot of selling pressure previously.

USD/JPY Video 03.05.19

Ultimately, if we break down from here, the hammer from the Wednesday session offer support. If we break down below that level we not only break down the support from the Wednesday session, but we also broke down below the 200 day EMA. Overall though, it’s very likely that we will get to that point, and this pair will more than likely continue to go much lower, perhaps reaching down to the ¥100 level which will also be significant support. A breakdown below that level would open up the door to much more significant losses, and then a complete trend change. Overall though, this is a market that continues to be noisy and choppy, so you may have a lot of troubles hanging onto a trade for a bigger move. If you are not a short-term trader, this may not be where you place your trade for a while.

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