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

The US dollar has gone back and forth during the trading session on Tuesday, as we continue to bounce around the ¥106.50 level, an area that has shown a bit of support as of late. That being said, the ¥107 level above has offered resistance as well, and at this point it is likely that we continue to go lower, perhaps reaching down towards the ¥105 level. This is a pair that obviously has broken through major support at the ¥107 level and is now looking at that level as potential resistance. Ultimately, this is a market that I believe we are looking at for a signal as to whether or not other markets around the world will perform. After all, the pair does tend to fall when there are a lot of issues in stock markets, etc.

USD/JPY Video 06.05.20

Even if we break above the ¥107 level, the market is likely to see a lot of resistance extending all the way to the ¥108 level. That is an area that I think will offer a lot of resistance, not only due to the previous price action, but the fact that the 50 day EMA is sitting in that area and going lower. To the downside, if we break down to a fresh, new low then it opens up the move down to ¥105 that I have been looking for over the longer term. At that point I would anticipate a significant amount of support coming back into the market though. Furthermore, it could be more of a grind to get down to that level.