USD/JPY Price Forecast – US Dollar Reaches Above 105The US dollar has rallied above the ¥105 level during the trading session on Monday, as we continue to see a lot of noise in general.
The US dollar has rallied a bit during the trading session on Monday to break above the ¥105 level. However, this should end up being yet another selling opportunity, regardless of US dollar strength in general. After all, when you look at this pair a lot of times you have to look at it through the prism of risk appetite. After all, the Japanese yen is quite often bought in order to look for safety in general. Because of this, the pair does tend to move right along with the stock market, although temporarily it can take off due to US dollar strength by itself. Nonetheless, I see a clear area where there is significant resistance above so that is what I will be looking for.
USD/JPY Video 27.10.20
That resistance area above starts at the 50 day EMA, extending to the ¥106 level. I am simply going to wait for a short-term rally that shows signs of exhaustion that I can take advantage of and then sell yet again. This is a market that I think is eventually going to break down through the bottom of a descending triangle that has been forming, and that triangle measures for a move down to the ¥102 level. This coincides with the most significant low in the last several months, so it does make quite a bit of sense. I continue to fade short-term rallies, as it seems like there is a significant amount of risk out there, and quite frankly there are a ton of different reasons that could come in and cause issues. With this, the Japanese yen should continue to do fairly well against most currencies, not just the US dollar.
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