USD/JPY Price Forecast – US dollar grinds higher

The US dollar broke higher during the trading session on Monday, showing signs of strength yet again. As the Americans came on board the market pulled back slightly but shows signs of buying yet again. I think this continues to be a “buy on the dips” situation as the pair has most certainly been in a longer-term uptrend, and this recent pullback came back to the 61.8% Fibonacci retracement level before finding buyers to step in and elevate the pair again.

I think there will be the occasional pullback but that should be thought of as a buying opportunity and perhaps even value. Keep in mind that the US dollar of course has rising interest rates backing it and of course beyond that there are a lot of fears when it comes to the Chinese economy. The Japanese yen sometimes is traded as a proxy for China, so at this point I think that might be part of what’s weighing upon the Japanese yen, plus quite frankly the central banks are so opposite as far as their directionality is concerned with monetary policy. I believe that we will go looking towards the ¥113.25 level, an area where we had seen massive selling in the past. As of the time of writing, I have no interest in shorting this pair, I believe that there is plenty of support underneath as we have formed a decent bottoming pattern over the last several days.

USD/JPY Video 23.10.18