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USD/JPY Price Forecast – US dollar continues consolidation

Christopher Lewis

The US dollar has gone back and forth over the last several days, and now we are getting to the point where we are simply killing time between now and the jobs number on Friday. Ultimately, the market seems to see a lot of resistance at the ¥107 level, with the ¥105 level underneath offering plenty of support. Ultimately, this is a market that should continue to be very noisy based upon a lot of risk appetite features out there, not the least of which is going to be the US/China trade talks, uncertainty in the stock markets, global slowdown issues, and a whole host of other potential problems.

USD/JPY Video 05.09.19

With the nonfarm payroll number coming out on Friday, it’s very likely that this pair will stay within this range in be relatively choppy between now and then. With that, I would think that this market would probably favor short-term range bound trading more than anything else, at least until we get that announcement on Friday. With that being the case, I think that the market probably finds this a very tight market and difficult situation to deal with. I think given enough time though, we will eventually get a move. One thing is for sure, the 50 day EMA above should continue to offer resistance, and therefore it’s likely that if we do get that move towards the ¥107 level I would anticipate a lot of selling pressure. A break down below the ¥105 level opens up the door to the ¥102.50 level, perhaps down to the 100 young level.

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This article was originally posted on FX Empire