USD/JPY Price Forecast – US Dollar Struggles With Same Large Figure

This is a pair that could be very interesting over the next 24 hours. This is because we have the presidential election which of course will have a major influence on what happens with the dollar, although I think it would be a bit much to ask for clarity at the end of the day. Overall, we are in a downtrend so that is the default position, to simply sell this pair. Beyond that, we also have the jobs number later this week and of course a Federal Reserve meeting. In other words, there is a whole slew of things that could move this market quite drastically.

USD/JPY Video 03.11.20

From a technical analysis standpoint, you can see that the ¥105 level has been crucial more than once. Beyond that, you can see that the 50 day EMA sits just above there and it should also offer resistance as it has been relatively reliable for some months now. The area between the 50 day EMA and the 200 day EMA has been a bit of a “zone of resistance”, so that remains my default position, to simply sell this market anytime he gets a little too close to that area.

Rallies are to be faded at this point, and if we can break down below the ¥104 level, it is very likely that we will open up a move down to the ¥102 level based upon previous support and resistance analysis. Beyond that, you can make an argument for a descending triangle that measures for that same exact move.

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