USD/JPY Price Forecast – US dollar continues to grind sideways

The US dollar has gone sideways in general against the Japanese yen, as we continue to see a lot of resistance just above. We are in a major cluster that had previously been very noisy on the chart, so it makes sense that we would struggle a bit. If we can break above this cluster, then I think the next major barrier is going to be found in the form of ¥111.50, an area that has seen a lot of noise. Beyond that, we also have the 200 day EMA sitting just above, and that of course could cause some issues.

USD/JPY Video 25.02.19

As for the bullish case, there is the 50 day EMA sitting just below but although it is starting to turn higher, we are at much more important levels just above. With that being the case, I suspect that the real risk is to the downside, especially with a Federal Reserve that seems to be very soft these days. If that’s going to continue to be the case, that will put a bit of a weight around the neck of this pair.

If we can break down below the ¥110 level, then I think the market goes looking towards the 100 a ¥0.50 level over the longer-term. Either way, I’m not looking for some type of explosive move, I think this pair is going to grind in the foreseeable future as there are a lot of mixed signals out there.

Please let us know what you think in the comments below