USD/JPY Price Forecast – US Dollar Continue Slow Grind LowerThe US dollar initially tried to rally during the early hours on Wednesday but gave back the gains against the Japanese Yen yet again.
The US dollar initially tried to rally during the trading session on Wednesday in the early hours but gave back the gains in order to continue the longer-term downtrend. Ultimately, this is a market that looks likely to go looking towards the ¥105 level yet again. This is an area that has been important more than once, so it makes quite a bit of sense that we would continue to see noise in this area.
USD/JPY Video 15.10.20
That being said, the market has broken down below the level before, so I think it is only a matter of time before we reach below there again and go looking towards the ¥104 level, which of course was the recent lows. At this point, breaking down below there then opens up the possibility of a much lower level. At this point in time, the market will then go looking towards the ¥102 level, which was an extreme low at that point in time.
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I have no interest in trying to buy this market, due to the fact that the Japanese bond market pays more of a return than the US one, and of course the currency markets pay close attention to that. With that being said, we continue to fade short-term rallies as they offer a bit of value when it comes to the Japanese yen. Ultimately, this is a market that I have no interest in buying due to the fact that the trend is so well ensconced, but I also recognize that the market is short-term focus more than anything else.
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