USD/JPY Price Forecast – US Dollar Continues to Slump During HolidaysThe US dollar fell again on Thursday, reaching down towards the ¥104 level. It should be noted that it was Thanksgiving in the United States.
The US dollar has fallen a bit during the trading session on Thursday as it continues its overall downtrend. That being said, the market was also dealing with the fact that it was Thanksgiving in the United States, so of course there were concerns about liquidity. Ultimately, this is a market that is trying to continue the overall negative trend, and really at this point in time it should be obvious that you should be only looking to sell, not to buy this pair.
USD/JPY Video 27.11.20
It is likely that we will pressure the ¥104 level, and then perhaps even ¥103.25. This being said, rallies are to be faded going forward, as the 50 day EMA has been massive resistance, and we obviously have been in a major downtrend for some time. Ultimately, I think that we make fresh, new lows again but at this point in time it looks like we probably have a lot of choppy conditions ahead of us. It makes quite a bit of sense as we are still looking at multiple headwinds around the world, but more importantly in the short term is the fact that people are paying close attention to the Federal Reserve and what they are doing as far as liquidity measures are concerned.
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Ultimately, we are in a strong downtrend and that should continue to be the case as the US dollar seems to be getting sold off against almost everything. As far as buying is concerned, I do not have a scenario in which I am seriously considering that right now, but at this point in time is to be a “one-way trade” in general.
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