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

The US dollar has been hammered early during the session on Thursday against the Japanese yen, as we continue to see a lot of troublesome trading. After all, it seems as if we cannot quite get our footing, and then of course will continue to cause headaches. I do believe that given enough time we are more likely than not to see some type of break out or break down, but it is clear that we just do not have the wherewithal to do so right now.

USD/JPY Video 10.09.21

As long as that is going to be the scenario that we are working with, then it does make quite a bit of sense that you need to be small with your position or be a short-term trader. I do not think that you have an opportunity to do anything other than one of those two actions. After all, this is a pair that has been attracted to the ¥110 level like a magnet, and of course the 50 day EMA is sitting in the same general vicinity and offering a flat look. In other words, we have nowhere to be.

The pair is somewhat sensitive to risk appetite, but at the end of the day I would not get overly excited about any move until we break above the ¥110.75 level or break down below the ¥109 level. If we break above the ¥110.75 level, then it opens up the possibility of a move towards the ¥111.50 level, and then possibly even the ¥112 level. On the other hand, if we were to break down below the 190 and level, then we clear the 200 day EMA and fall towards the ¥107.50 level.

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