Yahoo Finance USD/JPY Price Forecast – US Dollar Sideways Against Japanese Yen At Crucial Junction
The US dollar has gone sideways against the Japanese yen during trading on Thursday as we try to figure out where we are going longer-term. Ultimately, this is a pair that is very risk driven, and the biggest correlated market that I tend to use as a secondary or even tertiary indicator is the S&P 500. The S&P 500 finds itself close to the all-time highs, so it’s going to be difficult to see that market break out without some type of extremely strong catalyst. If we get that, then the USD/JPY pair can rally due to more of a “risk on” sentiment, but there is a lot of noise just above in this pair just as there is in the S&P 500.
USD/JPY Video 18.10.19
One thing that can help is earnings season in America, if it continues to show strength it’s possible that this pair will take off in sympathy. However, if the S&P 500 rolls over, it’s very likely that we will go looking to break down below the bottom of the Monday hammer, which would be a very negative sign. At that point it’s likely that we will see a lot of noise, so be very cautious about putting a lot of money to work. Ultimately, the 61.8% Fibonacci retracement level above could cause some resistance but once that gives way the ¥110 level would then be targeted, perhaps then it’s likely that the market could take off.
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This article was originally posted on FX Empire
