USD/JPY Price Forecast – US Dollar Quite Choppy Against YenThe US dollar has been all over the place against the Japanese yen during the trading session on Wednesday, as we continue to go back and forth around the ¥107 level.
The US dollar has gone back and forth during the trading session on Wednesday, as the ¥107 level continues to be a bit of a fulcrum for price. Ultimately, I believe that the market is likely to see a lot of volatility yet again. This is an area that was previous support and has also offered some short-term resistance. All things being equal though, it should be noted that Jerome Powell suggested that negative rates were not in the plans of the Federal Reserve, and that of course adds a little bit of US dollar strength suddenly.
USD/JPY Video 14.05.20
At this point in time, I think that the market will probably continue to fade at the 50 day EMA, and if we can break down below the candlestick for the trading session on Wednesday, then it opens up the door to the 160 and level underneath. I do not like trying to fight the overall attitude of the market, but I do see the possibility of trading back and forth in this general vicinity. I still believe that the USD/JPY pair will eventually go looking towards the ¥105 level. Ultimately, this is a market that continues to see a lot of volatility and I think that will continue to be the case going forward. Ultimately, if we break above the 50 day EMA then it opens up the door to the ¥109 level where I see even more resistance. I think that if the stock market start to roll over again, it is likely that this pair will as well, as people will go racing towards the Japanese yen for safety.