USD/JPY Price Forecast – US Dollar Continues to Reach Towards 50 Day EMAThe US dollar has rallied again against the Japanese yen, as it looks like we are trying to reach towards the 50 day EMA, which is sitting below ¥106.
The US dollar initially pulled back a bit during the trading session on Tuesday, but then turned around to rally significantly. Ultimately, the 50 day EMA above is going to cause a certain amount of resistance, as it has multiple times in the past. The ¥106 level is an area that I think will be massive resistance not only due to the fact that we have seen it cause some issues in the past, but also the 50 day EMA has been so reliable that people will be looking at it.
USD/JPY Video 30.09.20
To the downside, the ¥105 level is an area that people will pay attention to, but it has been sliced through a couple of times previously so it would not be overly surprising to see the market just fall through it. At that point, people would have to be looking at the ¥104 level, an area that people were buyers of this pair. We continue to grind overall, so I think it is only a matter of time before breakdown. Furthermore, you need to keep in the back of your head that this pair is somewhat sensitive to risk appetite, so if we see a lot of fear out there, it is very likely that this market will also accelerate to the downside.
As far as buying is concerned, I do not really have a scenario in which I am thinking about doing it quite yet, but an obvious place to pay attention to is the 200 day EMA, closer to the ¥107.25 level. That is an area that has a certain amount of structural resistance built in as well, and quite frankly it would take a significant turnaround to get there.
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