USD/JPY Price Forecast – US Dollar Continues Choppy Behavior Against Yen

The US dollar has gone back and forth during the course of the trading session on Thursday as we continue to look at the ¥110 level as crucial. Furthermore, we also have the 50 day EMA going sideways in the same general vicinity, suggesting that the markets will continue to stay in the same relative consolidation range that we have been in for a while. To the upside, the ¥110.75 level is resistance, and to the downside the ¥109 level offers support. The fact that we ended up forming a neutral candlestick makes quite a bit of sense as well.

USD/JPY Video 20.08.21

If we do break out of this range, it is possible that the market could make a bigger move, but it is obvious to me that on the longer-term charts, the area just above the recent consolidation is difficult to get through anytime soon. In fact, the massive amount of resistance extends all the way to the ¥112 level for several months now. To the downside, it is much easier to break down, but we obviously have to worry about the 200 day EMA.

If we were to break down below that level, then it is likely that we go looking towards the ¥107.50 level, perhaps even down to the ¥105 level. Because of this, I think it is only a matter of time before we start selling into any rally at this point. I do not have any interest in buying this market although I recognize that the US dollar is one of the favorite currencies out there. That being said, it is more of a “risk off” type of situation that we find ourselves in, so that will also send this market lower.

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