USD/JPY Price Forecast – US Dollar Continues Struggles

The US dollar has gone back and forth during the trading session on Wednesday, as we dance around the 50 day EMA. Ultimately, this is a market that I think continues to see a lot of choppy and difficult behavior, but I think there is a ton of resistance just above that should come into play and cause issues. Ultimately, this is a market that has a lot of noise attached to it and should continue to cause a lot of headaches. Ultimately though, I do believe that this market will find sellers but there is so much noise out there as we have several different crosscurrents geopolitically and global macro economically, that it is almost impossible to have any type of serious conviction. That being said though, just above, the ¥107.50 level causes major resistance.

USD/JPY Video 27.08.20

Because of this, I am simply looking for some type of resistive candle that I can start selling, and quite frankly this daily candlestick so far is not necessarily impressive. With that being the case, I like the idea of fading rallies, and therefore I am going to continue to do so, perhaps looking at shorter-term charts but recognizing that the daily chart could lead the way. To the downside, we probably go looking towards the ¥105.50 level eventually, but it does not necessarily mean that is going to be easy to get there. If we do break higher, and perhaps even the 200 day EMA, then I could consider buying this pair but until then I have no interest in doing so.

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