USD/JPY Price Forecast – US Dollar Recovers After Initial Fall

The US dollar initially pulled back a bit during the trading session on Wednesday but then turned around to show signs of strength. The ¥108 level is going to offer a bit of resistance, and so will the 200 day EMA which sits just above there. The 50 day EMA is trying to cross below there, as it shows the potential “death cross.” At this point, it’s very likely that the market will continue to see a lot of noise in that area, and quite frankly at this point there is a bit of an argument between US dollar strength, and the risk appetite of traders.

USD/JPY Video 19.03.20

The pair does tend to fall when there’s a lot of risk aversion out there, but there is so much dollar demand that it is starting to affect how this pair trades. Longer-term though, I think we have rallied far too quickly, and it’s only a matter of time before we rollover. We don’t have a signal yet, so I will look for it on a daily chart, which I don’t have at this point. Because of this, I will patiently wait for that opportunity, but until we get the signal I will be doing very much in this pair because it is now starting to slow down a bit. It’s a matter of waiting for the right signal to get involved in the market, something that we just don’t have quite yet. If we broke down below the candlestick for the trading session on Wednesday, that might entice me into shorting.