USD/JPY Price Forecast – US Dollar Heading Towards Resistance

The US dollar turned around to show signs of strength again, but we are still very much in a downtrend. Furthermore, the ¥104 level has been an area that traders have paid close attention to for some time, and if you look at the previous trading action, we had formed a symmetrical triangle, and broken down from it. This suggests that we should continue to see selling pressures. Furthermore, the Japanese yen is considered to be a “safety currency”, which of course is something that people may be looking for at this point in time. However, the US dollar is heavily weighed upon by the stimulus situation in America, which seems to be getting more aggressive as Donald Trump is demanding even more stimulus for Americans.

USD/JPY Video 24.12.20

The 50 day EMA above the ¥104 level has offered a significant amount of resistance as well, so I think that could offer quite a bit of resistance as well, so I think that is about as high as this pair can rally. Signs of exhaustion will be sold into, and I do believe that this pair is going to go looking towards the ¥102 level underneath, which is where we have seen a massive bounce.

All things being equal, this is a market that is trying to get down to that level but that does not necessarily mean we get there easily, nor does it mean that we get there quickly. With this being the case, you will have to be a bit patient, but I do think we get there over the longer term.

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