USD/JPY Price Forecast – US Dollar Retreats from Familiar Figure

The US dollar initially tried to rally during the Friday session but continues to find a lot of resistance near the 50 day EMA, as the market is simply treading water. That indicator is starting to slope a little bit to the downside, so it is more than likely going to send this market back towards the ¥106.50 level. If we can break down below there, then it is likely that the ¥106 level will be targeted. Either way, I certainly think that there is a lot of resistance above at the ¥107.50 level that extends up to the 200 day EMA. With that in mind, I am a seller on short-term rallies.

USD/JPY Video 20.07.20

This is a market that is built more for scalpers, because we have not had a significant move in a while. We are basically bouncing around in a 100 PIP range, waiting for some type of catalyst to move this pair. Granted, Forex markets do not sit still forever, but this one seems to be especially stubborn. It is almost as if this market is building up for a huge move, but the directionality is not quite clear yet. To the downside, if we were to break below ¥106, that could open up a move to ¥105, followed by ¥102. To the upside, if we were to clear the 200 day EMA we could go looking towards the ¥110 level above where we had seen the most significant resistance last month. Pay attention, this market is probably going to make a significant move and you will not want to be asleep at the wheel.

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