USD/JPY Forecast May 19, 2017, Technical Analysis

The USD/JPY pair had a very volatile session on Tuesday, as one would expect. After all, the Wednesday session was brutal, and I now have marked on the chart an area that is the high of the day. If we can break above there, which is essentially the 111.50 level, the market should continue to reach towards the 112 level after that. I don’t have any interest in shorting this market, least not from current levels as I believe that the 110-level underneath is going to continue to be massively supportive. Ultimately, this is a market that tends to be highly sensitive to risk appetite and after the massive selloff in the stock markets on Wednesday, this pair fell apart. The fact that the Thursday session has been much more stable suggests that the markets are trying to find their footing. However, we are starting to roll over a bit, so we could find ourselves consolidating, between the 110 level on the bottom, and the 111.50 level on the top. Once we break out of this area, then it will be easier to make a longer-term trade.

Headlines continue to hijack the market

Unfortunately, headlines out of Washington DC will more than likely continue to rattle the market from time to time, and that is going to make trading very difficult. Quite frankly, many of my professional friends have decided to stand on the sidelines over the next several sessions as the market will then have to decide how it feels about everything that’s going on. Currently, it seems as if we are in a bit of a more “risk off” mode, but certainly I think most of the initial damage and perhaps even the largest part of the damage has been done.
Eracash.com - The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.

All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. Eracash.com bears no responsibility for any trading losses you might incur as a result of using any data within the Eracash.com