USD/JPY Price Forecast – US Dollar Continues Consolidation

The US dollar has rallied again during the course of the trading session on Wednesday to reach towards the 50 day EMA. The ¥110 level course is an area that will attract a certain amount of attention as well, as it sits just above there. That being the case, the market could ultimately see a bit of choppy behavior over the next several days, as we have seen a clear consolidation area over the last several weeks. Ultimately, this is a market that I think will have to make a bigger decision and it is also worth noting that the most recent highs have all been at the same level, but we have made an attempt to break down a couple of times.

USD/JPY Video 19.08.21

I think this represents a marketplace that is fighting between the strength of the US dollar and the potential “risk off” attitude that typically represents when we see a lot of Japanese strength. Because of this, I think we will continue to see a lot of back and forth in this area so if you are a range bound trader you will probably find this market to your liking. Ultimately, this is a market that I think will respect the 200 day EMA underneath that is such an important support level for longer-term trend traders.

On the other hand, if we were to break above the ¥110.75 level it would kick off another attempt towards the ¥111.50 above that cause so much selling previously. Nonetheless, this looks like a market that is probably tightening more than anything else. That being said, I think that the market is probably going to continue to be more or less a short-term back-and-forth so intraday charting might be the best way to go forward.

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