USD/JPY Price Forecast – US Dollar Putting Up a Fight

The US dollar has initially pulled back a bit during the trading session on Tuesday, breaking below the ¥105 level. However, we have turned around to pounce above there, and now we are simply chopping back and forth in order to decide whether or not the previous resistance zone will hold. The resistance zone between the 50 day EMA and the 200 day EMA both continue to be an area that longer-term traders are paying attention to, so it is likely that we will continue to see selling in that general region given enough time.

USD/JPY Video 11.11.20

However, I am not looking to sell this pair without signs of exhaustion on the daily timeframe. The market could very well spike a little bit, before selling rather drastically yet again. I am more than willing to take that trade, and therefore I believe that you need to wait on some type of exhaustion candle before we get the next move lower. In other words, being patient is going to be the best way to play this market, but regardless of the massive turnaround that we have seen over the last 48 hours, the trend has not changed quite yet. That being said, the candlestick from the session on Monday could be the first shot across the bow, but there is still a lot out there that could have people running towards safety.

With that in mind, think of it this way: if this is in fact some type of trend change that we have started to see, you will have months if not years to be involved in it. There is no need to hurry up and rush into what could be a countertrend move.

For a look at all of today’s economic events, check out our economic calendar.