USD/JPY Price Forecast – US Dollar Falls Against Yen In Safety Bid

The US dollar has fallen rather hard during the course of the trading session on Monday, as we are reaching towards the ¥109.50 level. At this point in time, we are looking at a very ugly opening for the week across the risk spectrum, so it does make quite a bit of sense that the Japanese yen gets a bit of a bid, as it is considered to be a “safety currency.” That being said, the market is likely to continue to see a lot of noisy behavior, but at this point it looks like we have more of a downward bias than anything else right now.

USD/JPY Video 20.07.21

When I look at this chart, it looks very likely that we are going to go reaching towards the 200 day EMA underneath, which is at the ¥108 level currently, and therefore I think what we are going to see is more of a grind lower, because the US dollar itself is rather strong at the same time. In general, this is a run towards safety and therefore all of this makes quite a bit of sense. Furthermore, when I look at this chart it more or less becomes an indicator that I use for other yen related pairs such as the British pound against the Japanese yen, or the Canadian dollar against the Japanese yen, both of which look horrible right now.

All things been equal, I have no interest in buying this pair because the area above or we pull back from was major resistance for longer-term traders, seen on the weekly and monthly charts, which I do believe continues to hold going forward.

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