USD/JPY Price Forecast – US Dollar Looking For Its Footing Against Yen

The US dollar has plunged initially against the Japanese yen but then turned around to rally, only to pull back a bit from there. This type of back-and-forth trading during the session shows that at least there are buyers out there willing to jump in. At this point, the best trade is probably simply wait for the daily candlestick to form, can follow whichever direction the market moves at that point. In other words, if we break above the high of the day during the trading session, then it’s time to start buying and perhaps aiming towards the ¥111 level above. On the other hand, if we break down below the lows of the trading session, we probably go looking towards the ¥105 level again.

USD/JPY Video 31.03.20

At this point, the USD/JPY pair will continue to go back and forth based upon the latest headlines, so at this point it’s a bit difficult to do anything more than follow whatever the reaction is going to be. The simplest way I know to do that is to wait for a break of the high or low of the daily candlestick. I suspect that we are quite some way away from any type of stability in the currency markets, and this pair will probably be one of the least stable. Because of this, the most important thing you can do is keep your position size a bit smaller than usual.

This article was originally posted on FX Empire

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