Yahoo Finance USD/JPY Price Forecast – US dollar continues to form a base against yen
The US dollar has rallied again during the trading session on Friday as we continue to grind overall and form a bit of a base against the Japanese yen. There’s been a lot of technical damage done recently, but quite frankly we have found the longer-term uptrend line to be useful and supportive enough to keep the market afloat. Because of this, I think it’s only a matter time before we see this market turned around and rally even further. After all, we have made a “higher low” recently, as well as a “higher high.” That’s the very essence of an uptrend, so I think we are starting to turn the corner but it isn’t necessarily going to be the easiest thing to hang onto.
This pair of course is wrist sensitive, so if we get some type of rally in the stock market, it’s possible that we could see this pair rally as well as people run away from the relative safety of the Japanese yen. If we do break down below the 61.8% Fibonacci retracement level, near the 100 level ¥0.50 level, then I think that signals serious trouble. This is a market that continues to be very noisy, but that’s usual when involving the Japanese yen. I think that this pair will continue to be very sensitive to global trade, but at this point I think it so oversold a technical bounce at the very least is what you should expect.
This article was originally posted on FX Empire
