USD/JPY Price Forecast – US Dollar Pulls Back Against Japanese YenThe US dollar has pulled back a bit against the Japanese yen during trading on Wednesday, showing signs of weakness yet again. It is a simple continuation.
The US dollar initially tried to rally during the trading session on Wednesday, before pulling back to show signs of weakness yet again at the ¥108 level. This is a market that continues to see a lot of noise in general, and the ¥108 level has been an area of importance. The 200 day EMA above continues to offer quite a bit of psychological resistance as well, so at this point I fully anticipate that this market will go looking towards the ¥107 level yet again. This is an area that has been important support as of late, so I fully anticipate that it will be a target for short-term traders. If we can break down below there, then we can get a little bit of acceleration.
USD/JPY Video 21.05.20
Ultimately, we are in a downtrend as of late, and the 50 day EMA is of course causing a bit of interest in the pair as well. This is a pair that is overly sensitive to risk appetite, so it will be interesting to see how this goes as there is a lot of volatility in both directions of the risk spectrum. I do believe that the Japanese yen is winning, at least in the short term. If we broke above the ¥109 level that would change everything obviously, but at this point in time that does not look likely. I believe this is a market that will continue to be very noisy in general, as people are not sure what to do with the Federal Reserve and its mission to kill the US dollar.