USD/JPY Price Forecast – US dollar pulls back again against yen

The US dollar has initially tried to rally during the day on Friday but pulled back enough to find buyers at the 61.8% Fibonacci retracement level. I think at this point, the market should continue to go higher if we can get the break out, perhaps reaching towards the ¥113 level. If we break down below the lows of the consolidation, then I think we could unwind quite drastically. Remember, this is a “risk on/risk off” type of currency pair, and I think that if we can get a bit of a boost to risk appetite out there, it’s likely that we continue to go much higher.

I think at this point it’s likely that the ¥113 level will offer significant resistance, but if we break above there then we will probably go back towards the top of the Fibonacci sequence, reaching towards the ¥114.50 level. The 61.8% Fibonacci retracement level quite often attracts a lot of buyers, so it’s a nice technical set up if it works. If it doesn’t, then we wipe out to the 100% Fibonacci retracement level, meaning that we could go much lower.

Expect a lot of choppiness, but if we can get some type of good catalyst out there, it should send this market much higher. Overall, I suspect that we could have a pretty wild week ahead of us as the markets worry about trade tariffs, interest rates, and the like.

USD/JPY Video 15.10.18

This article was originally posted on FX Empire

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