USD/JPY Price Forecast – US dollar continues to grind higher against Japanese yen
The US dollar has initially pulled back during the trading session on Thursday but has turned around to break above the ¥111 level slightly. There is a massive amount of resistance above, and I think that should be something that you pay attention to. The ¥111.50 level is a massive barrier. Beyond that, it appears that the pair is likely to move lockstep with the S&P 500 still, which seems to be running into a significant amount of resistance.
USD/JPY Video 01.03.19
At this point, it looks as if the 50 day EMA just below is offering support, just as the ¥110 level will be. Ultimately, if we break down below there we will then more than likely unwind down to the ¥108.50 level. Ultimately, we are consolidating and that should continue to be the main take away from this pair. If you are short-term trader, back-and-forth trading should continue to be attractive, but at this point it looks as if both the S&P 500 and the USD/JPY pair have run out of momentum, and it seems like we are going to continue to struggle to make any headway.
Your capital is at risk
At this point, I think you can expect to see a lot of back-and-forth and noisy trading, and quite frankly unless you are short-term trader probably don’t have much to do here. If we were to break above the ¥112 level, then the longer-term uptrend would be confirmed, but right now it seems like the market simply can’t go anywhere.
Please let us know what you think in the comments below