USD/JPY Price Forecast – US Dollar Continues to Grind Back and Forth

The US dollar has continued to be very noisy against the Japanese yen, as we simply consolidated bounce around with no idea what to do. The 50 day EMA just above offers plenty of resistance, just as the ¥107 and ¥107.50 levels do. Ultimately, I do like the idea of shorting this pair on some side of exhaustion, but this pair has no particular direction at the moment.

USD/JPY Video 03.09.20

With that being said, we are essentially in the middle of the overall range as the 107 level is essentially the top part of the range, while the ¥105 level is essentially the bottom. As we are hanging around in the middle, this is a great place to lose money. With that in mind, I am waiting until we get to one of the extremes to place the appropriate trade, but right now I just do not see the set up. Keep in mind that both of the central banks are trying to kill their own currencies, and generally central banks get what they want when it comes to destroying Homeland paper.

With that being the case, there is a huge push and pull dynamic in this market that will continue to be a major headache for traders, so you simply cannot put too much money into this market and you need to you short term charts in order to get any type of set up going here. The jobs report comes out on Friday, and that will almost certainly be a major contributor to where we go next.

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