The US dollar has initially tried to rally during the week but ran into trouble again at the downtrend line marked on the chart, not to mention the fact that the ¥112 level has been rather resistive anyway. At this point, the market then has fallen rather significantly towards the back half of the week, reaching down towards the ¥108.50 level.
USD/JPY Video 30.03.20
The pair tends to be very sensitive to risk appetite, and the crosscurrents going on around the world. Because of this, I believe this pair will continue to be very difficult at times, but longer-term traders are probably looking for a return down to the ¥105 level. That’s an area that should be rather supportive, so if we were to break through there it would be a very significant turn of events. Breaking below the ¥105 level opens up the possibility of a move to the ¥102 level underneath. Once we get below there, the Bank of Japan probably shows its interest as they are not big fans of the Japanese yen reaching the 100 level.
To the upside, if we were to be able to break above the ¥112 level, then the market probably goes looking towards the ¥114 level next, and then eventually the ¥115 level after that. All things being equal, this will move up and down with the risk appetite, which is a very fickle thing at this point in time right now. With that being said, you may be better off trading shorter time frames, simply because of the massive swings the market has shown.
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/JPY Weekly Price Forecast – US Dollar Pulls Back Against Japanese Yen For The Week
- Crude Oil Price Forecast – Crude Oil Markets Drift Lower Into The Weekend
- Natural Gas Price Prediction – Prices Fall and Downtrend Remain in Tact
- Silver Weekly Price Forecast – Silver Markets Have Strong Week
- Gold Price Forecast – Gold Markets Continue to Consolidate
- USD/CAD Daily Forecast – U.S. Dollar Tries To Rebound As Oil Plunges