Yahoo Finance USD/JPY Price Forecast – US dollar noisy against Japanese yen
The US dollar has tried to rally during the trading session initially on Tuesday but found the area just above the ¥111 level be far too resistive to continue going higher. That’s not a huge surprise though, it’s an area where we had seen some selling in the recent past. I believe at this point the market probably finds reason enough to react according to the Turkish situation, which has calmed down, at least in the short term.
Beyond that, we need to worry about global trade issues, which of course we continue to see tensions between the United States and China take center stage. Ultimately, if we can get some type of resolution to that situation the interest rate differential and the interest rate outlook for both countries should come back into play. I believe at this point we need to worry about trade more than anything else when it comes to this pair, but if things do calm down the US dollar should continue to have plenty of support overall as the market looks very likely to continue to favor it due to the higher interest rates in the United States as compared to the situation with the Bank of Japan and it’s predicament, not being able to raise interest rates in the foreseeable future. The ¥110.25 level offers the initial target to the upside, and then after that I think we could go to the ¥112 level. If we break down from here, ¥110 underneath should be supported.
USD/JPY Video 15.08.18
This article was originally posted on FX Empire
