USD/JPY Price Forecast – US Dollar Slams Into Familiar Price

The US dollar bouncing against the Japanese yen is not much of a surprise, because quite frankly we had gotten a bit far from the ¥107.50 level, an area that acts as a magnet for price right now in this pair. This is going to be a remarkably interesting pair eventually, but right now it is simply is not.

USD/JPY Video 26.06.20

The 50 day EMA is sitting at the ¥107.50 level so that means we should see more resistance in that area. If we were to break above that level, then it is possible that we could go looking towards the 200 day EMA but I see quite a bit of resistance between both of those moving averages. It is almost as if the market is trying to break down but has far too much in the way of support underneath, and when you look at longer-term charts we are in the middle of a symmetrical triangle.

There will be a huge move in this pair eventually, but we are not anywhere near it right now, and therefore I think you simply play the return to choppiness type of trade, with perhaps the ¥106 level underneath being your short-term support. Keep in mind that this pair sometimes is overly sensitive to risk, but it also has the underlying issue of “What is the dollar doing today?” Built into it as well. If you are a short-term back-and-forth type of trader, this could be the market for you.

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