USD/JPY Price Forecast – US Dollar Quiet Against Japanese YenThe US dollar has done very little during the trading session on Monday as traders came back to work from the weekend.
The US dollar has done very little during the course of the Monday trading session as traders came back from the weekend. Ultimately, this market is simply climbing right along with the 50 day EMA, showing signs of life but also signs of stagnation at the same time. We are generally grinding higher, and I think the key word there of course is going to be “grinding.” With that being the case, I think what we are seeing is a scenario where one would have to assume that the market simply continues to the upside, albeit very slowly.
USD/JPY Video 25.05.21
To the downside, the 50 day EMA is obviously going to be important from a technical analysis standpoint, and perhaps even support. Nonetheless, if we break down below there then I believe there is even more support to be found near the ¥108 level, as well as the 200 day EMA which is currently sitting at the ¥107 level. At this point, the market is likely to continue to be very choppy more than anything else so I would not get overly excited but would rather use this pair as an indicator as to what is going to happen with the Japanese yen overall. After all, a currency’s strongest indication as to whether or not it is going to be bullish is how it performs against the greenback. Quite often, when this pair is choppy as it is right now, I will simply use it as directional bias as what to do with the JPY against other currencies such as the British pound or the New Zealand dollar. Right now, if I had to place a trade in this market, it would be to the upside.
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