USD/JPY Price Forecast – US Dollar Gives Up a Bit Against Yen

The US dollar has initially tried to rally during the session on Thursday but gave back the gains as the jobless claims in America continue to climb. Quite frankly, this is also a risk sensitive currency pair, so while both of these currencies are “safety currency”, quite often the Japanese yen will be favored. When you look at this chart, you can see that we have been making higher highs as of late and if we can break down below the ¥107 level, it is highly likely that we will continue to break down from here. At that point I would anticipate that the market would probably accelerate to the downside as it would be a major support being broken.

USD/JPY Video 24.04.20

To the upside, I believe that there is a significant amount of resistance at the ¥109 level, an area that of course has offered the latest swing higher that has been confirmed. The 50 day EMA is starting to swing lower, just as the 200 day EMA is starting to drop. At this point in time, I do favor the downside, but I recognize that as long as we are stuck between the 107 and 109 levels, this is a market that is more or less an indicator as to how the Japanese yen is doing. If this pair rises, then the Japanese yen will probably soften against several other currencies. On the other hand, if it falls than other currency pairs such as the GBP/JPY should be falling all things being equal. We do not really have a trade here yet, but underneath the ¥107 level, then it is likely we do.