USD/JPY Price Forecast – US Dollar Get Hammered Against Japanese Yen

The US dollar has fallen against the Japanese yen during the trading session on Tuesday, reaching down towards the 105.25 level by the time New York got on board. The 105 level in this pair is particularly interesting, as it has been massive support. However, when you look at the market from a longer-term standpoint, you can see that we are in fact trying to form a descending triangle based upon that area of sorts. If we do break down below the 105 level, it is likely that we go down to the 104.33 level.

USD/JPY Video 16.09.20

On the upside, the 50 day EMA continues offer plenty of resistance, so I think rallies at this point will continue to be sold into. Signs of exhaustion should be looked at with an eye on opportunity because rallies have failed consistently. However, if we break above the 50 day EMA, there are multiple areas where there is significant resistance. The 107 level is significant resistance, just as the 107.50 level seems to be structurally resistant not only due to the previous price action there, but the fact that we have a 200 day EMA crossing lower below there, which makes people pay attention.

Overall, I do not really like buying this pair, even though you can make a strong argument for this market bouncing from the 105 region. If that happens again, then I will simply be looking for selling opportunities on signs of exhaustion, as that set up has worked out quite nicely and at this point in time it does not look like anything has changed.

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