USD/JPY Price Forecast – US Dollar Continues to Struggle Overall

The US dollar has rallied a bit against the Japanese yen during the trading session on Monday, reaching towards the ¥107.50 level, an area that has quite a bit of interest built into it, I think at this point in time it is likely to continue to be a “fade the rally” type of environment that we find ourselves in. The ¥106 level underneath will continue to be rather important, as it had recently formed a bit of a “double bottom, and therefore I think a lot of buyers will probably show up there in order to pick up a bit of value.

USD/JPY Video 21.07.20

Looking at this chart, I think this continues to be a market that grinds a lot, as the world has become a bit of a confusing place as of late. After all, this pair is sensitive to risk appetite, but at the same time we have the Federal Reserve trying to crush the US dollar, so that is something that will have its say when it comes to this pair as well.

I think that this market is trying to test that double bottom underneath, but it is going to take some time to get down there. In general, this is a market that continues to put traders to sleep but if you are a short-term type of scalper, then this might be the type of environment you enjoy. If you are looking for a bigger move, you will probably need to look elsewhere. This is a market that is looking for some type of catalyst, but right now it does not have it.

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