USD/JPY Price Forecast – US Dollar Goes Back and Forth Against Yen

Christopher Lewis
·2 min read

The US dollar has gone back and forth during the course of the trading session on Monday as we are a bit over stretched at this point. The ¥114 level is an area that will continue to be important, as the longer-term charts have shown quite a bit of a proclivity to offer resistance in this area. With that in mind, I think that we are probably due some type of pullback, but I do not necessarily think that it is going to be a change in the overall trend. Underneath, I see the ¥112.50 level as a potential area of interest, and then of course the 50 day EMA underneath there offering support.

USD/JPY Video 19.10.21

When you look at this chart, you can see just how parabolic it has been, so even though it is a bit difficult to be a buyer up at these levels, the reality is you simply cannot short this market. With that being the case, it is a simple matter of “buying the dips” if and when we get that opportunity. Because of this, I think that you need to be very patient, and take advantage of any opportunities that present themselves.

However, if we turn around a break above the ¥115 level it would clear for a longer-term “buy-and-hold” type of situation, and a complete turnaround in the overall long-term outlook for this market. With that in mind, we could see the beginning of something rather long-term and bullish, but right now we probably have a lot of noise. With that in mind, keep your position size relatively small, and pay close attention to whether or not we can clear that ¥115 level.

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This article was originally posted on FX Empire

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