USD/JPY Price Forecast – US Dollar Rallies Again

The US dollar rallied slightly during the trading session on Wednesday, as the market continues to carve out the same range it has been in for quite some time. The ¥107.50 level continues to be resistance, and now that the 50 day EMA is sitting right there it makes quite a bit of sense that we continue to see it offer resistance. Quite frankly, even if we do break above there, we still have to deal with the 200 day EMA which is closer to the ¥108 level. I would anticipate that the market still has a lot of volatility in choppiness ahead of itself, but at this point if you are a short-term trader, you will probably love trading this market as we have such a clearly defined range.

USD/JPY Video 23.07.20

The ¥106 level was the scene of a double bottom, which of course is very supportive. I do not think that we will break down below that level anytime soon, but if we were to do so then it is likely that the market would fall towards the ¥105 level, followed by the ¥102 level. To the upside, breaking above the 200 day EMA does offer the possibility of a move towards the ¥110 level, but that is the least likely of scenarios as we are seeing US dollar weakness around the world. After all, the Euro, Australian dollar, and New Zealand dollar all have broken out against the greenback, while the British pound is in the process of doing it as well.

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