USD/JPY Price Forecast – Trump dumps the dollar
The US dollar fell rather hard against the Japanese yen during trading on Friday, breaking through the ¥112 level. This is an area that has seen a bit of demand in the past, but now that we have broken through this area I believe that we are going to go looking towards the next major demand area in the form of ¥111. I think rallies will continue to struggle in the short term, but longer-term I think there are plenty of reasons to see this market continue to go higher. Quite frankly, this pair had been overextended and it basically needed an excuse to rollover.
Your capital is at risk
I still have a target of ¥114.50, but there is enough noise just above that it’s going to take something rather special to make that move happen anytime soon. This is going to be more of a grind fest than anything else, so keep that in mind. By pulling back the way it is during the day on Friday, this gives us an opportunity to pick up the US dollar “on the cheap”, and of course there is a massive uptrend line just below that should continue to keep this market afloat. I’m not going to short this pair, I’m simply looking for value below to take advantage of.