USD/JPY Price Forecast – US dollar remains resilient

The US dollar initially fell during the trading session on Friday, but then turned around to rally. At this point it looks like a lot of confusion which makes a lot of sense as the G 20 is this weekend.·FX Empire
Christopher Lewis
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The US dollar pulled back a bit during the trading session, but then turned around to rally again. The market is going to be very interesting to pay attention to on the Monday open, as it will almost certainly react to whatever statement we get coming out of the US/China meeting. Ultimately, this is a market that is probably going to continue to see a lot of choppiness but we are still very much in a downtrend and that shouldn’t be forgotten.

USD/JPY Video 01.07.19

That being said, this pair is highly sensitive to risk appetite and that of course will be highly influenced by whatever statement the Americans and the Chinese come up with after the meeting. I do see a lot of resistance above and extending all the way to the ¥108.70 level. If we were to turn around and break above that level, that would be an extraordinarily bullish sign. I don’t know that it could happen yet though, and I do think that we are likely to see a lot of choppy until that announcement.

I anticipate that Monday will probably begin with the gap. If we gap higher, then you should be looking at the ¥108.70 level as a barrier that needs to be overcome for the buyers to continue to push to the upside. If we get that, then it could be a very strong sign of a complete reversal. However, if we get a gap lower this market is probably going to start falling towards ¥105 level which is what the breaking of the 61.8% Fibonacci retracement level had initially suggested anyway.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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