Yahoo Finance USD/JPY Price Forecast – US dollar churning for Friday session
The US dollar has turned sideways overall against the Japanese yen during the day on Friday, as we hover just above the vital ¥112.50 level, an area that I had targeted previously from the nice move higher. However, the move was a bit overdone so I would not be surprised at all to see this market pullback. Longer-term, I still believe that the market probably goes towards the ¥114.50 level, and then possibly the ¥115 level.
I see plenty of support and demand near the ¥112 level, and most certainly the ¥111.25 level. Pullbacks at this point should be thought of as value propositions, and it’s very likely that we will continue to see people jumping into the marketplace and lifting this market. I believe that the market participants around the world continue to look at the interest rate differential between the economies and understand that the US is likely to raise rates three or four times in the next year, while the Japanese are literally years from even considering doing the same thing. This is the main driver in Forex markets obviously, so over the longer-term we should continue to see buyers based upon this reason alone. If we do break down, it would take some type of extraordinarily large event as far as news is concerned, and you would probably see a complete “risk off” situation globally. This would not be the only market to break down under those terms and I think this could be one of the better trends over the next couple of years.
USD/JPY Video 16.07.18
This article was originally posted on FX Empire
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