USD/JPY Price Forecast – US dollar continues to soften against Japanese yen

The US dollar continues to soften against the Japanese yen, as we approach the uptrend line, the ¥112 level, and the 200 day EMA. Ultimately, this is a market that should be very sensitive to the statement from the Federal Reserve, but it looks as if the market is starting to “lean” to the downside. If we break down below those supported levels, then we should continue to go much lower. The downtrend line should continue to keep the market down, and I think that there are enough global concerns out there to continue to push money towards the Japanese yen. If we break down through this support that I have marked on the chart, this is a major trend changing situation.

USD/JPY Video 20.12.18

Ultimately, if we break down from here we probably go down to the ¥110 level, perhaps even the ¥108 level. I think that the market continues to be very noisy overall, and as we head into the interest rate statement we will probably see massive amounts of volatility. After that, if the Federal Reserve blanks and show signs of softness, this pair will probably roll over rather drastically, going much lower. The alternate scenario is that they sound overly hawkish, and if that’s the case we could go back towards the ¥114.50 level, but I don’t think we break above there as there are so many concerns around the world when it comes to growth, it makes sense that the pair very well could roll over.