USD/JPY Price Forecast – US Dollar Grinding Higher Against Yen
The US dollar has rallied a bit against the Japanese yen during trading on Friday, after initially dipping lower. Ultimately though, when I look at this pair the one thing that I notice is that we have been grinding lower for a while and I just do not see that changing anytime soon. After all, the market has been flooded with a lot of crosscurrents, and even as the US dollar has been strengthening overall, you should keep in mind that this pair is highly sensitive to risk appetite in general. With that in mind I like the idea of shorting this pair on signs of overextension or even exhaustion. I believe that the 50 day EMA above continues to offer a significant amount of resistance that will come into play, as this is a market that has been grinding lower for the longer term. The 50 day EMA has been relatively reliable as of late, so I do not see that changing anytime soon.
USD/JPY Video 28.09.20
Longer-term, I believe that we not only make fresh, new lows, but we go looking towards the ¥102 level. Given enough time, we probably even break down below there but obviously this is a market that features a couple of “safety currencies”, so it is difficult to imagine that it is going to be a clean and easy trade either way. With all that being said, I am looking to fade exhaustion a little higher, perhaps closer to the ¥106 level if I get that opportunity.
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This article was originally posted on FX Empire
