USD/JPY Price Forecast – US Dollar Continues to Drift Lower
The US dollar has broken down a bit during the trading session on Tuesday, as we continue to see a lot of negativity in general. Ultimately, I think that it is only a matter of time before we drop from here. The ¥104 level is obviously a target, but I believe it is only a matter of time before we break down below there and go looking towards the ¥102 level. The ¥102 level has been important more than once, and therefore it is likely that we will eventually have to retest that area. Ultimately, this is a market that should continue to see a lot of noise, but keep in mind that there is a certain amount of a safety aspect to shorting this pair.
USD/JPY Video 28.10.20
Rallies at this point in time should continue to be selling opportunities, all the way up to the ¥105 level, and then the 50 day EMA which is colored in red on the chart. The 50 day EMA has been reliable for several months, and as a result it is only a matter of time before there would be a reason for sellers to jump back in. The US dollar could get hammered due to the idea of massive amounts of stimulus coming, or it could simply be a situation where people buy the yen based upon concerns around the world and let us be honest here – there are plenty. We are in a downtrend anyway, and as a result it is very likely that we continue to go towards that area. Fading rallies on short-term charts continue to be the best way going forward.
For a look at all of today’s economic events, check out our economic calendar.