USD/JPY Price Forecast – US dollar sideways for the Wednesday session

The US dollar has fallen rather sharply against the Japanese yen over the last couple of days as Wall Street continues to get pummeled. However, the ¥112 level looks to be rather supportive. I think at this point we are overdue for a bit of a bounce, and that could send this market towards the ¥113 level. That’s an area that will offer a significant amount of supply, but I do think that we could break above there if we can get good news on Wall Street. I think that most Wall Street traders are a bit cautious right now, and that will have a bit of a knock on effect in risk appetite. Because of this I am a bit cautious about putting too much money to work in one shot, but I also recognize that we are oversold. We have been in and uptrend for some time, so I don’t think the sellers will overwhelm the market for much longer.

Expect a lot of volatility, but the pullback has been strong enough that I think value hunters are starting to come back into the marketplace and will take advantage of this dip. I would start out slow though, as headlines continue to rock the markets back and forth. Ultimately, I think the ¥114.50 level will be the target.

USD/JPY Video 12.10.18

This article was originally posted on FX Empire

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