USD/JPY Price Forecast – US Dollar Remains Choppy Against Japanese Yen

The US dollar has done very little during the trading session on Thursday, as we continue to dance around the ¥106 level. By doing so, the market is obviously showing itself to be winding up for a bigger move, as we are forming a symmetrical triangle. That being said, we still lack direction from a longer-term standpoint but from the shorter-term it seems as if the US dollar will remain a bit sluggish against the Japanese yen as the 50 day EMA above has caused major resistance. With that being the case, I do like the idea of fading short-term rallies, and if you look you can see that the moving averages are offering more of a negative slant to them, so that is worth paying attention to as well.

USD/JPY Video 11.09.20

To the downside, the market is likely to reach towards the ¥105 level, which should be massive support. With all of that, I think that this remains more of a “fade on the short-term rallies” type of marketplace, but one day we are going to head into our offices and see a large candle giving us much more significant directionality. Patience will be needed, but eventually we should get a much clearer signal for a bigger move. Ultimately, it does look bearish but both of the central banks are very loose with monetary policy so you will get a lot of “push pull” action going forward, especially as they are both also considered to be safety currencies.

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