USD/JPY Price Forecast – US Dollar Continues to Tread WaterThe US dollar has tried to rally towards the ¥107.50 level yet again, which is an area that has been a bit of a magnet for price.
The US dollar has rallied initially during the trading session on Tuesday, as we slammed into the ¥107.50 level yet again. Ultimately, the market continues to look at that area as important, so it is not hugely surprising that we have seen the market reached there. The 50 day EMA sits just above, and the 200 day EMA just above there. Speaking of the exponential moving averages, they are going sideways right now and as a result show that the market is not quite ready to do anything. I think this continues to be the situation in general, so trading this pair is a bit difficult.
USD/JPY Video 17.06.20
If you are a short-term back-and-forth type of trader, then this will be the type of market you like. However, this is going to be difficult trading in general, so keep in mind that the pair also has a certain “push pull” effect on it because both of these are considered to be safety currencies. With that in mind, I believe it is only a matter of time before we see a breakout, but right now we do not have the momentum.
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The market breaking above the ¥108 level could open up a move towards the ¥110 level, but on the other hand if we break down below the ¥107 level then we could go down to the 160 and level. One thing is for sure, the best way that I have found to use this pair is to use it as a proxy for Japanese yen strength or weakness in other markets.
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