USD/JPY Price Forecast – US dollar volatile during Thursday session against Japanese yenThe US dollar reached above the ¥108 level, but then pulled back a bit as we have suddenly seeing a wall of worry when it comes to this trend. Keep in mind that this pair is highly sensitive to the stock markets and risk appetite in general, and after the ECB announcement it seems like people are still all over the place.
The US dollar has gone back and forth during the trading session on Thursday, as we initially popped above the ¥108 level, but then pulled back again. Quite frankly, this market is all over the place and probably a bit stretched to the upside. This isn’t to say that we are suddenly going to collapse, but without a doubt we are going to need to pay attention to risk appetite overall and follow as such.
USD/JPY Video 13.09.19
The S&P 500 is an excellent proxy for fear and greed, so pay attention to that as it could lead the way. All things being equal this is a market that I think it’s probably due for a bit of a pullback but ultimately the ¥107 level should be supportive as it was previous resistance. All things being equal though, I think we continue to see a lot of choppy action, and even if we did rally from here I suspect that the black 200 day EMA will offer significant resistance. All things being equal at this point I think what we are going to see is a very nauseatingly volatile situation.
It is probably best left alone at this point, because the market is obviously at an inflection point. We are overextended so I would prefer to the downside but I think even that is somewhat limited unless we get some type of exhaustive market move. If the S&P 500 falls apart then we may be able to break down below the ¥107 level.
Please let us know what you think in the comments below