USD/JPY Price Forecast – US Dollar Bounces Against Japanese Yen

The US dollar has bounced a bit during the trading session on Wednesday after initially dipping lower. That being said, the market is starting to hit significant structural resistance, so do not be surprised at all to see this market get rolled right back over. There have been several shooting stars just above, and then typically means that there is a major resistance barrier in that general vicinity that should be paid close attention to. Ultimately, I think that the “lower highs” that we continue to see should send this market down towards the ¥105 level.

USD/JPY Video 10.09.20

If you think about it, the entire set up makes quite a bit of sense as the Federal Reserve is throwing a ton of money out there right now, and of course the Japanese yen is considered to be a bit of a safety currency. As long as that is the case, it makes quite a bit of sense that this pair would continue to stall in this general vicinity. The 50 day EMA has been relatively reliable as of late, so that is worth paying attention to as well.

Whether or not we can break down below the ¥105 level the next time we approach it is completely unknown, but it does look like we are having a serious go at this area, and if we can make the momentum pick up enough to break down below there, it is very likely that we will see this market unravel towards the ¥104.33 level, where it bounced from previously.

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