USD/JPY Price Forecast – US Dollar Drops Toward SupportThe US dollar got hit rather hard during the trading session on Monday, reaching down towards the ¥108 level.
The US dollar broke down during the trading session on Wednesday to reach down towards the ¥108 level. That being said, the 50 day EMA is also sitting in the same area as well, so it does make quite a bit of sense that we would see buyers trying to support the market in this area. Most of the selling had occurred during the European session, so it remains to be seen whether or not we can continue this downward pressure or if the market will turn around and bounce again. After all, the 50 day EMA does tend to attract a lot of attention.
USD/JPY Video 20.04.21
If we were to break down below here, then I think we are looking at the ¥107 level as the next target, as this market most certainly is sensitive to every big figure that we approach. Looking at the chart, we have gotten a bit ahead of ourselves, but the question now is whether or not the United States dollar is going to drag this pair down? It certainly seems to be losing strength, so we have a lot of questions asked. In the short term, I am simply waiting for opportunities to start buying on supportive candlesticks, but we obviously do not have them. Given enough time, this is a market that I think will continue to be extraordinarily noisy, but all things been equal this is a market that I think is simply correcting from an overbought condition.
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