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USD/JPY Price Forecast – US dollar continues to grind higher

Christopher Lewis
Updated
The US dollar continues to grind a bit higher during the trading session on Thursday, as the Japanese yen continues to soften. However, we are in a very tight consolidation range overall, so I’m not looking for much out of this market between now and the end of the year.

The US dollar has went a bit higher during the trading session on Thursday, as we continue to grind towards the ¥114 level. This is an area that has been crucial more than once, as we continue to see a lot of resistance just above. I think that the resistance extends all the way to the ¥115 level, so keep in mind that it’s going to take a while to get through there. That’s assuming of course that we even can but it does look like that’s the trajectory overall that the market is trying to follow.

USD/JPY Video 14.12.18

Ultimately, there is a massive amount of support underneath though, as the uptrend line clearly denotes on the chart, as well as the ¥112 level and the 200 day EMA. It’s because of this that I think we are simply going to squeeze sideways overall between now and the end of the year, but I do prefer to buy dips more than selling rallies. This is only because recently we have seen such a strong up trending channel. Looking at this chart, I think it will be difficult to break down for any significant amount of time, but I do believe that we will get a lot of volatility based upon headlines and of course trade fears. In general, I think that the major move that seems to be likely to happen in this pair, one direction or the other, it’s probably a story for January.

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This article was originally posted on FX Empire

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