USD/JPY Price Forecast – US dollar flat on Tuesday

The US dollar went back and forth during the trading session on Tuesday, as we simply can’t decide whether or not the ¥109 level could be broken to the downside. Remember that this pair is highly sensitive to risk appetite so it likely it will literally move right along with headlights, probably from the US/China trade relations. If we do breakdown below the ¥109 level, then it’s likely that we could get out to the ¥108 level. Ultimately, I do think that we will try to fill the gap above at the ¥111.15 handle, but it may take some time to get there, and it certainly will take some good news.

USD/JPY Video 29.05.19

Pair tends to move in the same general direction as the S&P 500 to keep that in mind. If we can get a couple of positive days out of that market, it’s likely that the USD/JPY pair will move right along with it. However, if the stock market breaks down it could be a sign of “risk off” and if that’s going to be the case, it’s very likely that this pair will go looking towards that ¥108 level. A breakdown below there would be rather negative and could send this market down to the ¥105 level underneath. Ultimately though, I do favor the upside but a little help would be nice as this pair does tend to be sensitive to so many other markets. Bond yields still favor the United States, so overall this should go higher.

Please let us know what you think in the comments below