USD/JPY Price Forecast – US Dollar Plummets Against Japanese Yen

The US dollar has fallen again against the Japanese yen, reaching down towards the ¥106 level by the time New York got online. This being said, the market looks as if it is more than likely going to continue to see noisy trading to say the least. Ultimately, I do think that this pair breaks down a bit further but right now the biggest issue is going to be the ¥106 level. If we break down below there, then it is likely that this pair goes looking towards the ¥105 level. That of course is a large, round, psychologically significant figure and therefore could send this market into a bit of a fight. At that point in time though, I fully anticipate that we will give way and start looking towards the ¥104 level.

USD/JPY Video 18.08.20

Keep in mind that the Federal Reserve continues to flood the market with currency, and therefore it will devalue the US dollar given enough time. Over the longer term, we could go looking towards the ¥102 level, possibly even below that area to reach towards the ¥100 level. That is an area that would catch the attention of the Bank of Japan probably causing it to lose its sense of humor. All things being equal, we have had a short-term pullback from the downtrend, and now it looks like we are ready to continue the overall selling. The 50 day EMA looks as if it is being respected, so the breakdown from here is not a huge surprise at this point in time. With this, I remain bearish.

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