Yahoo Finance USD/JPY Price Forecast – US Dollar Gaps Lower Against Japanese Yen
The US dollar has gapped lower against the Japanese yen to kick off the week on Monday, as global growth concerns continue to be a major issue, especially now that the Chinese are starting to close down entire cities. With that being the case, a lot of people are not sure as to how this will affect the global economy, but it certainly can’t be good. With all that being said, the market had been rolling over for several days and it now looks as if we are trying to reach the bottom of the channel that I have painted on the chart. That means a move to the ¥108 level could very well be in the cards. That being said, if the market was to recapture the ¥109.25 level, then you would have to look at it as being extraordinarily bullish.
USD/JPY Video 28.01.20
Keep in mind that the US dollar will be a bit of a “safety currency” as well, so if you are going to buy the Japanese yen over the next couple of days, you will probably get more mileage out of other pairs like the NZD/JPY pair, or the AUD/JPY pair. While this market can fall, there will be a certain amount of US dollar demand due to the chase for safety and the US Treasury markets. In other words, this market may not fall as quickly as some of the other yen related ones. That being said, this is certainly a market that has a lot of downward pressure on it, so with Wall Street opening up very poorly, that could continue to put bearish pressure here as well.
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This article was originally posted on FX Empire
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USD/JPY Price Forecast – US Dollar Gaps Lower Against Japanese Yen
