USD/JPY Price Forecast – US Dollar Continues Same Range Against Yen

The US dollar rallied a bit against the Japanese yen during the trading session on Monday as yet again we have seen more volatility in choppiness and are the Forex markets. The volatility is short range volatility though, so it is not really something that is benefiting traders. People simply have no idea what do at this point, as the noise from the headlines are getting worse, not better.

USD/JPY Video 06.10.20

Keep in mind that this pair is highly sensitive to risk appetite, and while the president of the United States is battling the coronavirus, we also have positive headlines coming out of yet another drug trial. In other words, there is plenty of noise for everybody to get chopped up. The only way to trade this market is to look at the longer-term picture and recognize that we have been drafting lower for some time. Because of this, fading rallies will be the only way to play this market, but it is going to be like watching paint dry as the market continues to respect the ¥105 level, and at the same time respect the 50 day EMA which is sitting just above current pricing.

You will probably be forced to trade very short term charts, scalping 20 or 30 pips at a time. Anything bigger than that will need some type of catalyst to kick things off. At this point, it is a bit difficult to guess with that catalyst will be, but something has to be out there somewhere that will get the markets moving. Until then, there is no point in fighting.

For a look at all of today’s economic events, check out our economic calendar.