USD/JPY Price Forecast – volatility continues during Thursday session

The US dollar has initially surged against the Japanese yen during trading on Thursday, only to turn around and fall back towards the ¥111 level. This area has been important more than once, so don’t be surprised if we get a bit of volatility going into the session. However, I do believe that one of the main reasons for this volatility was a statement coming out of North Korea that sounded a bit threatening towards the Donald Trump administration. At the end of the day, it’s just more of the usual, so it makes sense that the market will probably shrugged this off rather quickly.

I believe currently the market participants will continue to look at the ¥111 level as support, just as the ¥110.50 level should be supportive. Beyond that, I would anticipate that market should perhaps make another move towards the ¥112 level bone, which has been massive in its implications. I do believe that longer-term we are trying to form some type of base here, but it’s going to be very difficult to hang onto a trade if it’s too large in size. Because of this, keep your position size small at first, but if the trade starts to work out in your direction you can obviously add later. I anticipate that one of the major issues of course is going to be the time of year as volumes will be as high as usual, so keep that in mind as well.

USD/JPY Video 10.08.18