USD/JPY Price Forecast – US dollar volatile during Thursday session against Japanese yen
The US dollar has gone back and forth during the trading session on Thursday, as we initially popped above the ¥108 level, but then pulled back again. Quite frankly, this market is all over the place and probably a bit stretched to the upside. This isn’t to say that we are suddenly going to collapse, but without a doubt we are going to need to pay attention to risk appetite overall and follow as such.
USD/JPY Video 13.09.19
The S&P 500 is an excellent proxy for fear and greed, so pay attention to that as it could lead the way. All things being equal this is a market that I think it’s probably due for a bit of a pullback but ultimately the ¥107 level should be supportive as it was previous resistance. All things being equal though, I think we continue to see a lot of choppy action, and even if we did rally from here I suspect that the black 200 day EMA will offer significant resistance. All things being equal at this point I think what we are going to see is a very nauseatingly volatile situation.
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It is probably best left alone at this point, because the market is obviously at an inflection point. We are overextended so I would prefer to the downside but I think even that is somewhat limited unless we get some type of exhaustive market move. If the S&P 500 falls apart then we may be able to break down below the ¥107 level.
Please let us know what you think in the comments below