USD/JPY Price Forecast – US Dollar Continues to Get Crushed

The US dollar has shown itself to be very weak against the Japanese yen, and now that we have broken below the bottom of the candlestick from the Monday session, it looks like the momentum is starting to pick up. Ultimately, I think that we will eventually take out the bottom of the massive candlestick from last week when everybody got excited due to the initial news about a vaccine. That being said, the market is likely to see reality creep back in as there is still a lot of concern out there when it comes to global growth. Yes, a vaccine will fix a lot of this but at the end of the day we are still quite a few months from seeing that happen.

USD/JPY Video 18.11.20

Furthermore, the market is likely to see the opposite at times, meaning that the US dollar continues to get hammered as well, so this is a “lose/lose situation” for this pair. I do believe that we continue with the overall downtrend, which has been ensconced in this pair for a while. The fact that we pulled back from the 50 day EMA should not be a huge surprise. That being said, there is a huge area of resistance between the 50 day EMA and the 200 day EMA that should be paid close attention to, as it is a “wall of worry” for the buyers. With this being the case, I think it is only a matter of time before sellers would come in if we do try to get up into that area. Currently, I have noticed whatsoever in trying to buy this market.

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