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

The US dollar initially tried to rally during the trading session on Monday but has given back some of the gains to start to drift towards the downside again. Ultimately, I believe that the 50 day EMA probably continues to attract a certain amount of attention, as it has been important lately. That being said, the market is likely to see a lot of choppy volatility, but it is still very much in an uptrend, so I think it is only a matter of time before we continue to see noisy behavior that eventually gets bought into.

USD/JPY Video 08.06.21

The ¥109 level is backed up by the 50 day EMA, so that is an area where I think things would come together. If we break down below there, then it is possible that we go looking towards the ¥108 level. Ultimately, the market is trending to the upside and that is really the most important thing to pay attention more than anything else. Ultimately, I do not have any interest in trying to get too cute with this pair, so I am simply waiting for some type of supportive daily candlestick to get involved. I suspect that we probably see that in the next day or two, so little bit of patience will probably go a long way.

As you can see, there is a bit of an up trending channel that has yet to be broken, so there is no reason to get too cute with this, simply wait for the opportunity to get long and take advantage of the stability of the move.

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