USD/JPY Price Forecast – US Dollar Quiet Against Japanese YenThe US dollar continues to climb back and forth between the two levels that have been so important for this pair, as Thursday was simply more of the same.
The US dollar has found itself to be relatively quiet against the Japanese yen during the trading session on Thursday, as we see the ¥107.50 level as a major barrier to overcome. Ultimately, I think that the market is likely to see a lot of noise and choppiness more than anything else, so if you are a short-term trader this is a market that you will probably like quite a bit. Beyond the ¥107.50 level, I see a significant amount of resistance all the way to the ¥108 level, as it has been resistive in the past and of course we have the 200 day EMA sitting in that general vicinity. Think of this as a “zone of resistance” that the market will struggle to break out of.
USD/JPY Video 24.07.20
To the downside, I see the ¥106.75 level as a short-term support level, but I also recognize that the ¥106 level is crucial as we had recently formed a bit of a “double bottom” in that vicinity. If we were to break down below that level it could open up a move down to the ¥105 level, followed by the ¥102 level. The major moving averages are sloping lower, but ever so slightly. Because of this I think that the market is likely to grind lower more than anything else. At this point in time it is likely that we will see a slow drift lower and therefore it is possible that the best trade is to simply fade short-term rallies for small moves to the downside. At this point I think that is probably about as good as this gets.
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