USD/JPY Price Forecast – US Dollar Continues to Grind Back and Forth Against Yen


The US dollar has gone back and forth during the session on Friday against the Japanese yen as we are dancing around the 50 day EMA. Furthermore, the ¥107.50 level has been a magnet for price. Furthermore, one thing that you should pay attention to is that every time the market rallies we have seen a bit of exhaustion.

From the very beginning of the session, it has been very choppy during the day in the USD/JPY pair. The market simply sees this as a back-and-forth type of situation and therefore it will probably continue to be a bit difficult. After all, the currencies are both considered to be “safety currency”, so therefore a lot of volatility can be expected in the current environment.

USD/JPY Video 25.05.20

Furthermore, the market seems to be stuck in a bit of a range between ¥108 and ¥107. I do not see any reason why this market will break out of this range, so ultimately fading rallies probably works out best. That being said, it is not to be easy to break down below the ¥107 level due to the fact that we have seen so much buying pressure underneath as of late. Looking at the chart, I believe that back-and-forth issues continue to be the biggest problem with this market and therefore it is more or less a short-term trading type of opportunity that you will more than likely find. If we get some type of impulsive candlestick out of this 100 point range, that could change a lot of things but right now there are no real signs of that happening. Looking at the back-and-forth nature of this pair, you are best served by trading small bits and pieces instead of jumping “all in” as the lack of movement can tie up trading capital for no reason.

This article was originally posted on FX Empire


2020-05-22 17:15:00

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