USD/JPY Price Forecast – US Dollar Continues to Hover Around Same Area

The US dollar has gone back and forth during the trading session with a slightly positive bump against the Japanese yen. The market obviously has been very choppy, but at this point in time I think what we are seeing is more consolidation than anything else. Ultimately, I believe that this is a market that should continue to attract a certain amount of downward pressure though, and I do think that it is only a matter of time before we break down. After all, the US dollar is on its back foot overall, but really at the end of the day it is more than likely going to be a situation where the Japanese yen could also be thought of as a safety currency.

USD/JPY Video 08.12.20

To the upside, I see the 50 day EMA offering significant resistance, as it has done multiple times in the past. Furthermore, this seems to be a “zone of resistance” extending all the way to the 200 day EMA and of course there is a trendline that comes into play as well. All of that being said, I do believe that rallies are to be sold into, just as they have been for some time. However, it is worth noting that somewhere around the ¥103.70 level there is support trying to assert itself. Ultimately, I do think that we break down below there, but how many times it takes to break through there is a completely different question. With all that being said, I would expect a lot of choppy and noisy action in the short term, but eventually we should reassert the downtrend.

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