USD/JPY Price Forecast – US Dollar Continues to Show Resistance Against Yen

The US dollar initially tried to rally against the Japanese yen during the trading session on Tuesday but gave back the gains as we continue to see a lot of resistance above the ¥106 level. With that being the case, the market is likely to break down a bit from here, because we can have plenty of printing out there due to the Federal Reserve and that of course will work against the value of the greenback against most currencies. Having said that, this pair will possibly move slower than many others, so if you are looking for a major meltdown you might be a bit disappointed. Having said that, I do think the US dollar will be on the back foot against most currencies, so it will translate to a lower USD/JPY pair.

USD/JPY Video 12.08.20

On a break down below the ¥105 level, the market is likely to go down to the ¥104 level, possibly even down to the ¥102 level. Somewhere around that area we would more than likely see a bit of a bounce, but I do think that given enough time we will probably break down below that level due to the Federal Reserve and its antics. Having said that, the Bank of Japan is ultra-loose with its monetary policy as well, so that might be part of what makes this move a little slower than some of the other ones that you will see against the greenback. Having said that, we have recently seen a significant break down, so it is worth paying attention to the possibility of extended losses here.

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