USD/JPY Price Forecast – US dollar continues to go sideways against yen
The US dollar when sideways against the Japanese yen during the trading session on Monday to start the week, as we continue to hang around the ¥110.50 level. This area of course has a certain amount of psychological significance to it, but at the end of the day it just looks like “fair value” for the pair on the short-term charts. I suspect that we are more likely to see a break out to the upside than not, but I think it’s going take some type of event for that to happen. The alternate scenario is that we were to break down below the ¥110 level, which opens the door to the ¥109 level after that. A break above the ¥111 level sends this market much higher, perhaps reaching towards ¥112.50 level after that.
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I expect a lot of volatility but believe that there are value hunters underneath, and as I record this video it looks like we are trying to make the move higher. That’s not to say that we are ready to break out completely, but it certainly looks as if there are plenty of people willing to step in and pick up this market when it does drop. I think that a lot of this will move upon trade wars and risk appetite, so keep in mind that the headlines could turn this thing around rather quickly. I would keep my position size small for the meantime, but once we break above the ¥111 level I might be willing to add to it.