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USD/JPY Price Forecast – US dollar continues to find support

Christopher Lewis

The US dollar has initially drifted lower during the trading session on Friday, as the Chinese announced that they didn’t think the trade negotiations were going to get any better anytime soon. At this point, it’s very likely that we are going to see a lot of back and forth in this pair, but as the Americans have stepped on board, stock markets and started to recover and therefore it looks like this pair may do the same thing.

USD/JPY Video 20.05.19

There is still a gap above at the ¥111 level, which has yet to be filled. Because of this, I think that the market will aim for that given enough time but obviously we need some type of “risk on” attitude to move. At that point, I think that the ¥111 level could be rather resistive, so I’d be willing to take profit at that point.

The alternate scenario of course is that we break down through the support level that I see right now that extends down to the ¥109 level. A move below there then sends the market down to the ¥108 level, which is an area that should be crucial for the markets overall. In general, I believe that this is a market that is looking for a reason to go higher, but quite frankly has to wait on the rest of the world to catch up. If we were to break down below the ¥108 level, that’s probably going to be due to some type of financial crisis situation.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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