USD/JPY Price Forecast – US Dollar Continues to Cling to Same Level

The US dollar has gone back and forth during the course of the trading session on Tuesday as we continue to chop around the ¥110 region. Furthermore, we also have the 50 day EMA sitting right here going sideways. This is not a huge surprise, because the last week of August is typically a very quiet time of year. With this being the case, the market looks likely to see a lot of back and forth but nothing along the lines of any type of momentum, if for no other reason than the fact that bigger traders will be involved. However, there is also the fact that we have the jobs number coming out on Friday, and that of course will drive a lot of the lack of momentum until then as well.

USD/JPY Video 01.09.21

To the downside, the ¥109 level is significant support, as the 200 day EMA continues to see a lot of interest, as it is reaching towards that same area. To the upside, we have the ¥110.75 level, an area that has been rather resistive multiple times. Ultimately, this is a market that I think continues to see a lot of sideways action, as the market will simply wait for some type of longer-term inflows. Right now, we just do not have it, but it is worth noting that the ¥112 level above would be the gateway to more of a “buy-and-hold” type of market but let us be honest here: this is a market that looks very likely to have nowhere to be anytime soon, and I think that probably continues to be the case. In that scenario, it is a short-term traders market only.

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