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

The US dollar initially tried to rally during the trading session on Friday but gave back the gains as the counter trend rally fizzled. It looks as if we are going to continue to go much lower, but I also recognize that there is a lot of noise out there just waiting to happen. As long to that is going to be the case, I think this is a market that will eventually find a little bit more clarity, but right now it looks as if we are simply grinding away and going back and forth.

USD/JPY Video 09.11.20

All things being equal, though it is obvious that this pair is granting lower and when you look at the fact that we broke through a major descending triangle, the target of course is the ¥102 level. I do not know that we get there easily, and I would not be surprised to see some type of an attempt to rally, but that rally will clearly offer an opportunity to start shorting again. Ultimately, I think this is a market that probably continues to sell off, mainly due to the fact that we just do not have enough safety out there for people to leave the comfort of the Japanese yen.

Furthermore, we have to wonder how much stimulus is coming out of the United States, and the election mess still has that up in the air. After all, Joe Biden clearly wants to spend as much money as possible, but at the same time if the Senate remains Republican it will put the brakes on some of the more grandiose plans.

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