USD/JPY Price Forecast – US Dollar Noisy Against Japanese Yen
The US dollar has gone back and forth during the trading session on Thursday as we continue to see a lot of noise around the world. Ultimately, this is a market that traders continue to look at to the downside, but obviously we cannot go all the way down in one fell swoop. Looking at this chart, the ¥104 level is an obvious support level, so if we break down below there it is in fact going to be a major event. At that point, I anticipate that the market will probably go looking towards the ¥102 level, which was the scene of a major bounce previously. That being said, there will be a lot of noise between here and there that you need to pay attention to. Remember, both of these are considered to be safety currencies so at times this pair can act kind of strange.
USD/JPY Video 30.10.20
To the upside, I still believe that the ¥105 level has a certain amount of importance built into it, not only because it is a large, round, psychologically significant figure, but also because it is an area that had previously been supportive and has already been retested. With that in mind, I believe that we are probably looking at a scenario where will take advantage of short-term rallies and start fading them as the time comes. As far as buying is concerned, I do not really have a scenario in which am comfortable doing that right now, as there is so much risk out there it is hard to imagine that we suddenly start shorting the Japanese yen everywhere. With this, fading the rallies and of course selling on a breakdown below ¥104 makes the most sense.
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