USD/JPY Price Forecast – US Dollar Running Into Resistance AgainThe US dollar has rallied a bit against the Japanese yen on Thursday, but it continues to recognize every 50 pips as a resistance barrier.
The US dollar rallied a bit against the Japanese yen during the trading session on Thursday, as we slammed into the ¥106.50 level, an area where the 50 day EMA currently sits. With that in mind, makes quite a bit of sense that we continue to see this market drift lower. That being said, I do believe that we are going to continue the slow grind lower, but we have the jobs number coming out on Friday and that tends to be extraordinarily influential to this pair, at least in the short term.
USD/JPY Video 04.09.20
The 50 day EMA of course attracts a lot of attention but quite frankly this market has run into resistance every 50 pips or so. Because of this, I do not think that you need to over complicate things, simply sell rallies that get near a “midcentury level.” To the upside, the absolute “ceiling” in the market is at the ¥107.50 level, where the 200 day EMA currently resides. To the downside, the ¥105 level offers massive support, so if we were to break down below there it would probably send this market much lower. Until then, I think he just simply trade back and forth but I most certainly favor the downside, because the highs are getting lower.
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Keep in mind that the central banks for both of these currencies are currently very loose with monetary policy, and therefore it makes this pair rather choppy, so you will need to be very patient on your trades, because quite frankly this could take a while. Nonetheless, I do like the idea of trading this market with short-term charts, and small positions to pad the results of my other trading.
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