USD/JPY Price Forecast – Dollar Crashes Through Big Figure

The US dollar has broken down during the trading session on Thursday, slicing through the ¥105 level, an area that has been important multiple times recently. Because of this, it is likely that we will continue to see this market struggle a bit, and now I believe that we have made it clear that we are going lower. The next target will be roughly ¥104.33, which is where we have bounced from previously. Breaking through their allows the pair to go down towards the ¥102 level, possibly even the ¥101 level.

USD/JPY Video 18.09.20

We have started to move towards the “risk off trade” yet again, as the Japanese yen is considered to be the ultimate “safety currency.” While the US dollar has started to show signs of strength against other currencies, it is struggling against the yen as it typically will do when the stock markets are under a bit of pressure. With that being said, I think that short-term rallies continue to be sold into, and now that we are below the ¥105 level, we have most decidedly picked up downward momentum. In fact, you can see during the day on Thursday we initially tried to recapture that area but then broke down.

Ultimately, the 50 day EMA has offered significant resistance previously, and I think it will continue to do so. That being the case, it is not until we break above there that I am looking for an opportunity to go long. Fading rallies on short-term charts should continue to be one of the best ways going forward. At this point, I have no interest in buying this pair, because although it looks cheap, it is probably going to get cheaper.

For a look at all of today’s economic events, check out our economic calendar.