USD/JPY Price Forecast – US Dollar Pulls Back Against Yen

The US dollar has pulled back a bit during the trading session on Friday from the crucial ¥110 level, an area that of course offers quite a bit of psychological resistance. We had broken above the ¥110 level previously but rolled back over just above that level. At this point, it’s obvious that the market is going to continue to see a lot of trouble there, so I think it makes quite a bit of sense that the US dollar has two pull back a bit in order to build up the momentum to finally break out. What is interesting though is the fact that if we do rollover from here it’s likely that we have just formed a “lower high”, which is the first sign of perhaps a little bit more trouble ahead.

USD/JPY Video 10.02.20

The 50 day EMA underneath colored in red could offer a nice buying opportunity, and therefore paying attention to that area should make a certain amount of sense. The ¥109 level is an area where there could be a lot of people getting involved in. The uptrend line below there of course will define the overall trend. The market has been grinding higher for a while, but it looks as if we are running out of momentum here at the ¥110 level. Furthermore, when you look at the longer-term charts, the ¥115 level is the top of the longer-term consolidation and the ¥105 level underneath offering significant support. In other words, the ¥110 level is essentially “fair value.”

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