USD/JPY Price Forecast – US Dollar Continues Same ConsolidationThe US dollar continues to consolidate in general, as the US dollar against the Japanese yen seems to be attracted to the ¥107.50 level.
The US dollar has done truly little against the Japanese yen during the trading session on Monday, as some of the largest countries in the world had the holiday session, leading to a lack of liquidity. With that in mind, I look at the ¥108 level as an area that offers significant resistance. If we were to break above, there then we have to focus on the 200 day EMA which is just above. After that, then the ¥109 level is the next target. In other words, it is very tight all the way up to that level.
USD/JPY Video 26.05.20
To the downside, if we were to break down a little bit the ¥107 level is a significant support level, followed by the 160 and level. There is probably a little bit more easing going lower due to the fact that the last several days have seen the buyers give up the gains for several days in a row. In other words, there is more of a “lean” to the downside. In other words, it is going to be easier to go lower. After all, the Japanese yen is significant as far as safety is concerned, even more so than the US dollar under certain circumstances. That being said, and the fact that both of these are considered to be safety currencies, it is exceedingly difficult to imagine that we are going to go and make a significant move in the short term, as there is just far too much in the way of noise.
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