USD/JPY Price Forecast – US Dollar Flat Against Japanese YenThe US dollar has gone back and forth on Tuesday, as we are levitating near a relatively high level in relation to the last few weeks.
The US dollar has gone back and forth during the course of the trading session on Tuesday as we continue to hover around the ¥104.33 level. There is a significant amount of resistance above, so even though it is very possible we get a short-term push to the upside, I believe that it is relatively limited. The 50 day EMA has been broken above, but this has happened multiple times in the past, and I believe there is a significant amount of resistance extending all the way to the 200 day EMA above, which is still very well past the ¥105 level. Because of this, I think it is more than likely going to be a scenario that sooner or later we will get a nice candle to start selling.
USD/JPY Video 13.01.21
All of this being said, keep in mind that we are at extreme lows, so the pair may try to recover a bit, but the downside is certainly ensconced at this point. The US dollar continues to struggle in general as we have a lot of noise in general, but there is the idea of stimulus in the United States working against the value of the greenback overall. Because of this, I think that what we are looking at here is a bit of a “ceiling in the market” at the ¥105 level, so I am comfortable shorting this market anytime it shows signs of exhaustion between here and there. I do not presently have much thought towards buying, but if we broke above that 200 day EMA, I would have to rethink the entire thesis.
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