USD/JPY Price Forecast – US Dollar Reaches Towards ¥110

The US dollar has rallied a bit during the course of the trading session on Wednesday to reach towards the ¥110 level yet again. This is an area that has been a bit of a magnet for price multiple times over the last couple of months, and of course the 50 day EMA is sitting just below it and going sideways. Because of this, I do not expect much in the way of movement, especially as the market is probably going to be sitting sideways and still in order to let the Jackson Hole statement come out from various central bankers around the world. Obviously, the most important central banker right now will be Jerome Powell, so everybody will be paying close attention to the statement and whether or not the Federal Reserve is going to taper or not.

USD/JPY Video 26.08.21

This will have an obvious influence on the greenback in general, so we will have to pay close attention to what is said. If the US dollar falls overall, that might be slightly negative, but keep in mind that this pair also is very sensitive to risk appetite in general as well, so if we get a sudden selloff in general it might be a scenario where we go up and down with the stock market. Nonetheless, this is a market that has been stuck in a range between ¥109 on the bottom and ¥110.75 on the top. As things stand right now, I just do not see this market breaking out anytime soon, but after the Jackson Hole symposium, it may change the overall attitude. At this point, the biggest use I have found for this market has been as a strength or weakness indicator for the Japanese yen.

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