USD/JPY Price Forecast – US Dollar Kills Time Against Japanese Yen

The US dollar has gone back and forth against the Japanese yen again during the trading session on Monday as the market seems to see ¥106 as significant resistance but does not have a particular proclivity to drop from here. In other words, this is a market that does not have anywhere to be. Because of this, it is going to be very difficult to get overly excited about trading this market, because quite frankly it is just sitting still.

USD/JPY Video 25.08.20

Perhaps it is waiting for the Jerome Powell speech at Jackson Hole later this week, which could give us some clues as to what the Federal Reserve is thinking monetary policy wise. That being said, it could be a quiet couple of days, but it still seems as if there is more of a downward proclivity longer-term then there is up. Both of the central banks are extraordinarily loose with their monetary policy, so it should not be a surprise that we are having trouble picking up traction in one direction or the other. Eventually something will break or snap that we can follow, but right now we simply do not have it.

Unless you are a very short-term scalper, you will probably find this market to be a bit difficult to trade, because quite frankly there is not much in the way of real estate that it is currently covering. That being said, markets cannot go sideways forever so it is only a matter of time before we get an impulsive candlestick that we can follow. Right now, it is simply a waiting game.

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