USD/JPY Price Forecast – US Dollar Testing Support Against Yen

The US dollar has fallen again against the Japanese yen during trading on Wednesday, as we await the announcement coming out of the Federal Reserve. While no real changes expected, the reality is that the market is decidedly negative on the US dollar against most currencies, and this could be causing a bit of trouble for the pair right now. Ultimately though, this is a market that is in the throes of major support, so if we were to break down below the ¥107 level, it opens up a move down towards the ¥106 level.

USD/JPY Video 11.06.20

On the other hand, if we break above the ¥108 level then we will more than likely go looking towards the ¥110 level which is significant resistance. With that in mind, it is probably best to see where the daily candlestick closes before putting any money to work, as this pair cannot be extraordinarily volatile and with the Fed speaking during the day, that of course could cause major issues.

Quite frankly, this is been an exceedingly difficult pair to make money and lately, because it has not had much in the way of movement with perhaps the last six or seven sessions being the outlier. Because of this, I will probably sit on the sidelines when it comes to this pair for the next 24 hours, but this pair does tend to give clear and obvious signals given enough time. With that in mind, it is important to be patient but a set up should be coming.

For a look at all of today’s economic events, check out our economic calendar.