Yahoo Finance USD/JPY Price Forecast – noisy Monday for this market
The US dollar has initially pulled back during the day on Monday, as the Japanese yen was desirable in a “risk off” environment. We have bounced a bit since then, but not enough to get excited about. Longer-term, I still believe that this pair probably goes higher based upon interest rate differential, but we need the geopolitical situation to calm down, most importantly the tariffs between the United States and China being slapped upon each other. If that situation calms down, that should be reason enough for this market to continue to rally. I suspect that there is a likelihood of volatility with a slightly upward tilt over the longer-term, so therefore I do look at short-term pullbacks as buying opportunities.
I think that the ¥110 level will be somewhat supportive, but I also believe that the market could go as low as ¥109 before being in serious trouble. Longer-term, I anticipate that this market will attack the ¥111 level, and then go looking towards the ¥112.50 level. That area is significant on longer-term charts, so I would anticipate that the market would pause in that general vicinity. I believe that the market continues to be noisy, so keep your position size small until we get some form of clarity that we can take advantage of. Proper money management will be crucial.
USD/JPY Video 19.06.18
This article was originally posted on FX Empire
