USD/JPY Price Forecast – US Dollar Breaks Down Against Japanese Yen

The US dollar initially tried to rally during the trading session on Thursday, as the ¥107.50 level continues to cause major issues. At this point, it looks as if the market is probably going to continue to struggle, as the risk appetite out there continues to be a major issue. I think at this point it’s very likely that we see the market try to reach down towards the ¥105 level, and with the jobs number coming out during the trading session on Friday, it’s likely that we will continue to see a lot of noise in general. I do believe that the market continues to see a lot of negativity in general, and this type of volatility certainly has people very rattled. It only takes a random headline to get the markets selling off yet again. With the jobs never going on Friday there is the possibility that we will continue to see massive swings in one direction or the other.

USD/JPY Video 06.03.20

To the upside, if the daily candlestick breaks above the ¥107.50 level, then it’s possible that we go higher. Having said that, the larger consolidation area between the ¥105 level and the ¥115 level is what longer-term players are paying attention to. It certainly looks as if we are going to try to get back down to that lower level, but it doesn’t necessarily mean we need to do it in the next candle. This could be more of a choppy descent which would make sense considering the massive amount of selling pressure that we have seen as of late. Fading rallies could make sense.