USD/JPY Price Forecast – US dollar continues to run into barriers
The US dollar try to break out during the day early on Tuesday, but continues to struggle with the downtrend line that forms the top of the symmetrical triangle we have been in. Because of this, it would not surprise me at all to see a little bit of a pullback but if we can clear the ¥113 level, that would be the “all clear” for traders to start buying this pair for a larger move. At that point, I would anticipate a move to the ¥114.50 level, an area that is significant from a historical perspective.
Your capital is at risk
In general, I believe that this pair will continue to be very choppy, and you should keep in mind that it is very sensitive to stock markets globally and of course global trade. With the situation going on between the Americans and the Chinese, it has been a bit difficult to trade this market as of late. However, we have a clear area that if we can get above, it could become a much easier place to put money to work. In order to trade this market you will need to keep an eye on the Sino-American relations, and all of the distractions that situation can provide. If we do pull back, I think the ¥112 level will be supportive, followed by the ¥111 level. I would not expect any meltdown, just simply a pullback.