USD/JPY Price Forecast – US Dollar Drifts Lower Against YenThe US dollar initially tried to rally during the trading session on Monday but ran into a bit of a buzz saw of resistance near the ¥111 level. At this point, the market is likely to run into a bit of resistance above due to the fact that we are overextended, but obviously there is a lot of US dollar demand.
The US dollar initially tried to rally during the trading session on Monday but ran into a bit of trouble above the ¥111 level as the Federal Reserve has announced a buying program of expanded assets. At this point, the market is starting to look a little overextended anyway, so you see a bit of a pullback would make some sense. Nonetheless, the ¥112 level above is very resistive from a longer-term standpoint, so it should not be surprised that the market could not simply smash through it. Having said that, I do think that it is only a matter of time before we make a serious attempt at it. This will be especially true if the US dollar continues to be in such demand.
USD/JPY Video 24.03.20
To the downside, I would think that the ¥108 level would be an area where there should be a certain amount of support based upon the 200 day EMA if nothing else. Having said that though, I also recognize that if we get some type of panic run towards the Japanese yen, then this pair could fall. However, I would suggest that if you see this pair starting to fall with any type of momentum, you may be better served shorting some of the other yen crosses such as the NZD/JPY pair, or even the GBP/JPY pair. If nothing else, you can use this chart as a barometer for the Japanese yen itself.