USD/JPY Price Forecast – US Dollar Finding Buyers Against Japanese Yen

The US dollar has pulled back initially against the Japanese yen during trading on Tuesday but has found support during early trading hours. The 50 day EMA has offered technical support, so it is worth paying attention to. Ultimately, I think that the market is going to find a reason enough to go higher, perhaps based upon a “risk on” type of scenario. The ¥110 level above is major resistance, so that of course will be a target. Just below, the ¥107.50 level is massive support. I think this is the range that we are going to be trading in for a while, so it is worth paying attention to.

USD/JPY Video 10.06.20

Keep in mind that this pair does tend to pay a lot of attention to the S&P 500, which of course is an area that is one of the most obvious places to measure risk. The Japanese yen is considered to be a “safety currency”, which of course the US dollar is as well, but the Japanese yen is considered to be the “ultimate one.” Because of this, when the US dollar is being sold in other pairs, quite often you can see it rise over here. Looking at this chart, if we were to break down below the ¥107.30 level, then I think we could go down to the ¥106 level. Longer-term charts continue to show a lot of squeezing and consolidation, so we could get an explosive move sooner or later, but I think we are quite a way from that day.

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