USD/JPY Price Forecast – US Dollar Stabilizes Against Yen

The US dollar has gone back and forth against the Japanese yen during trading on Wednesday, as we have reached the ¥105 level only to turn around and bounce. At this point, the market has wiped out a lot of upward momentum, at least from the previous surge higher. With that being the case, I am looking at this market as if it may bounce a bit. I do not have any interest in buying it, rather I would be more interested in selling above. Having said that, if we were to break down below the ¥105 level significantly, then it is likely that we will go racing towards the ¥104.33 level below, where the market bounced from previously.

USD/JPY Video 20.08.20

To the downside, I anticipate that this market will go looking towards the ¥102 level, possibly even the ¥100 level given enough time. This is all about the US dollar and has almost nothing to do with the Japanese yen, as the Federal Reserve is pumping of liquidity into the marketplace. As long as that is going to be the case, then it is likely that we will find value on the occasional rally, as we can short the US dollar yet again. At this point, the pair would have to clear the ¥107.50 level to have me thinking that a more significant upward swing was coming. That does not look to be very likely, so I am more than willing to simply wait for selling opportunities. All things being equal, this pair will be sluggishly negative over the longer term from what I see.

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