USD JPY Price Forecast – Continues to Struggle with Same Big Figure

The US dollar continues to try to break higher against the Japanese yen, but it also continues to struggle to break above ¥106 with any type of force. I think that will continue to be the case, and quite frankly I believe that short-term traders will continue to jump in and fade any type of rally towards that region. The 50 day EMA sits just below current pricing, but as you can see from previous moves, the 50 day EMA has been broken ever so slightly in the past multiple times.

USD/JPY Video 09.10.20

With that in mind, it does not mean as much as one would think under normal circumstances. Furthermore, you should keep in mind that the word “average” should be taken quite literally, in the sense that it is not a hard wall of support or resistance. Looking at the chart, you can see that there seems to be an entire zone of resistance that extends all the way to the 200 day EMA.

The ¥105 level below should continue to be an area that offers a little bit of support, so I think that people will aim for that level, but one would have to assume that there will be a certain amount of support there. At the very least though, I think it does make for a nice potential target and that is essentially what we should be looking at. I do not have any interest in buying, at least not anytime soon, because quite frankly the pair has been in a strong downtrend for some time. I have no interest in trying to fight what has been an obvious move.

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