USD/JPY Price Forecast – US Dollar Bounces to Stay in Range

The US dollar has rallied a bit during the session on Tuesday as the market continues to hang in the same consolidation area that we have been in for a while. With that being the case, the market is likely to continue to go looking towards the 50 day EMA above, which sits just below the ¥110 level, an area that has been essentially “fair value” as of late. Whether or not we can break above there is a completely different question, but even if we do I see a lot of resistance at the ¥110.75 level, an area that we have failed at three different times over the last month or so.

USD/JPY Video 18.08.21

To the downside, the ¥109 level is an area that has been offering support, and I think that will continue to be the case, as the 200 day EMA is starting to reach towards it. With that being the case, I think what we see here is the real possibility of more sideways action, perhaps followed by selling pressure as people could be looking to the safety of the Japanese yen more than anything else. With this being the case, I think it is only a matter of time before sellers jump in and take advantage of the first signs of exhaustion. As far as buying is concerned, we may be able to do so for the short term, but longer-term I find it very difficult until we clear the ¥112 level, something that the market has not been able to do for what seems like ages.

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