USD/JPY Price Forecast – US Dollar Continues to Grind Against YenThe US dollar has rallied a bit against the Japanese yen during the trading session on Thursday, after initially falling.
The US dollar has shown itself to be rather resilient against the Japanese yen during the trading session on Thursday, but quite frankly this is a market that has been respecting the 50 day EMA for some time, and therefore it is worth paying close attention to. Ultimately, I do believe that this is a market that can give you an opportunity to short it again, but keep in mind that there is a lot of news flow going on currently. The Japanese yen is considered to be the “ultimate” safety currency going forward, so if we get some type of major risk off event that will probably put pressure on this pair.
USD/JPY Video 02.10.20
You can see that the 50 day EMA has been nice dynamic resistance, extending all the way to the 200 day EMA. With that in mind, I do believe that it is only a matter of time before we get a selling opportunity, which will more than likely be based upon shorter-term time frames. Signs of exhaustion near the 50 day EMA continue to offer nice opportunities for those shorting the markets, so I think that is exactly how this will play out. The ¥105 level underneath would be the target, followed by the ¥104 level. To the upside, I do not have any interest in buying until we break above the 200 day EMA at the very least, so really not much of a thought here, at least not until something changes rather drastically with the global news flow.
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