USD/JPY Price Forecast – US dollar Continues to Drift Lower

The US dollar has drifted a bit lower against the Japanese yen during trading on Wednesday, slicing through the ¥104 level. By doing so, it shows that we continue the overall longer-term downtrend. With that being the case, it makes quite a bit of sense that we would see short-term rallies faded. Furthermore, I believe that we will probably eventually go towards the bottom of the range and go looking towards the ¥103.25 level.

USD/JPY Video 19.11.20

To the downside, the market is probably going to see a lot of support near the ¥102 level as well. That being said, currency traders will have to deal with the fact that the markets are arguing with themselves in multiple situations are now, including the coronavirus numbers around the world, and the fact that a lot of economies are going to be shutting down. With that being the case, it makes sense that the Japanese yen continues to be a favorite currency in general. With that being the case, I think that rallies all the way up to at least the ¥105 level should be looked at with suspicion, and I would get short of this pair on signs of exhaustion.

The 50 day EMA is sitting right there at the ¥105 level as well, so that is something worth paying attention to also. The area between the 50 day EMA and the 200 day EMA has been rather resistive as of late, so all things being equal I think we continue to go lower in the time we get closer to that area.

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