USD/JPY Price Forecast – US Dollar Choppy Against Yen

The US dollar has gone back and forth during the course of the trading session on Wednesday, as we continue to hover around the ¥110.50 level. This is an area that has been short-term support previously, and therefore it makes sense that we are simply hanging around this area. Regardless, we are in an uptrend and therefore I think we need to look at this as a market that should eventually find buyers.

USD/JPY Video 08.07.21

One of the most obvious areas underneath would be the ¥110 level, because it is a large, round, psychologically significant figure and of course it also has the 50 day EMA approaching that at the same time. Furthermore, you can see that the market has been in a bit of an up trending channel, so that might be something worth paying attention to as well. All of that being said, if we break down below the ¥110 level, we probably have more of a deeper correction ahead. If that is the case, then I would look at that as a potential opportunity to short other currencies against the Japanese yen, not necessarily the US dollar as it has seen so much in the way of upward pressure lately.

In this market, I believe that we are looking at the possibility of using that as an indicator as mentioned previously and selling other pairs on breakdowns along the lines of the AUD/JPY pair, the GBP/JPY pair, and particularly the CAD/JPY pair if the oil market also falls. This is a concept known as “triangulation”, and the user quite often with this currency pair.

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