USD/JPY Price Forecast – US Dollar Presses Against Familiar Big Figure

The US dollar has gone back and forth during the trading session on Thursday as we tested the ¥105 level, an area that has of course been important, due to the fact that it is a large, round, psychologically significant figure in of course the fact that it is an area that we have seen a lot of action previously, so I think it makes quite a bit of sense that both buyers and sellers will be paying attention here. That being said, the analysis will not be any different than it has been in the past, as the 50 day EMA has offered a bit of a ceiling in the market.

USD/JPY Video 16.10.20

Furthermore, the most recent lows on spikes lower continue to be rather extreme, based upon risk appetite. The US dollar has been sold off repeatedly due to the fact that people are expecting stimulus, but then we have flipped the script, now people are starting to look at the possibility of more of a “risk off” type of environment. That also favor selling this pair, so it is a bit of a “double whammy” at the moment.

I have no interest in buying this pair, as we have seen not only a significant amount of selling pressure, and of course an obvious barrier between the 50 day and the 200 day EMAs. Ultimately, I like the idea of selling short-term rallies as this market continues to chop lower in general. Longer-term, we could start looking towards the ¥104 level, followed by the ¥102 level.

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