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USD/JPY Price Forecast – US dollar pulls back against Yen

The US dollar has fallen against the Japanese yen during the trading session on Monday as traders came back to work. Ultimately, it looks as if the ¥108 level will offer support though, so I think that there is a lot of interest in this area.

The US dollar has fallen against the Japanese yen during the trading session on Monday, as we have continued to see a bit of negativity. The ¥108 level is of course an area that should be rather interesting, as it is a large come around, psychologically significant figure, and of course it’s an area that has seen action in the past. We have recently bounced back to the 50% Fibonacci retracement level from the flash crash, so it’s very likely that we could continue to go lower. If we can break down the ¥108 barrier, then we would probably go down to the ¥105 level after that. I think this is going to continue to be very choppy, as the pair is highly sensitive to risk, and of course the markets always look to this currency pair when we have a lot of issues.

USD/JPY Video 15.01.19

I think rallies at this point will only bring in more sellers, and it’s likely that the ¥110 level above is major resistance. Any type of exhaustion after a short rally tells me it’s time to start selling again, as the market has done a lot of technical damage lately, and that of course will weigh upon the attitude of traders overall. I think that the 105 young level underneath will be a massive floor though, and it’s going to take quite a bit of work to break down through that level. This year is more than likely going to favor the Japanese yen, unless of course the overall attitude changes of risk appetite.

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This article was originally posted on FX Empire

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