USD/JPY Price Forecast – US Dollar Looking for Bid Against Yen

The US dollar has rallied a bit during the trading session on Thursday, breaking above the ¥104 level. Ultimately, this is a market that seems to be struggling with big figures, just as this one is offering resistance already. Looking at this chart, it is also worth noting that the 50 day EMA above continues offer resistance that extends all the way to the 200 day EMA, and therefore it looks very likely to see sellers between these two moving averages going forward. Quite frankly, we have seen a significant amount of selling pressure for months now, and it is difficult to understand how this would suddenly change. This is especially true considering that there is so much out there in the way of risk, which typically favors the Japanese yen.

USD/JPY Video 20.11.20

The candlestick for the day is showing signs of stability, but I think this will only cause another selling opportunity above, as we have seen such a stringent downtrend. Furthermore, if we can take out the ¥103.25 level, then it is likely that we will go looking towards the ¥102 level. The ¥102 level is an area where we have seen a major bounce previously, so it would make sense that we would have a lot of interest in this general vicinity. At this point in time, I think that this is more or less going to be a grind lower, so you should approach the market in that manner. Fading short-term rallies will continue to be the way I approach this market, but we may have a bounce for the next day or two.

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