USD/JPY Price Forecast – US Dollar Choppy Against Japanese Yen

Mom the US dollar has rallied a bit during the trading session against the Japanese yen on Monday, as we have seen a little bit of resiliency. Having said that, the market is still going to be very thin, as we are between Christmas and New Year’s Day, so obviously there is going to be a serious lack of volume. If that is going to be the case, then we may get sudden and erratic moves. Nonetheless, I do believe that the pair still favors the downside more than anything else, but we may have to rally a bit towards the ¥104 level. That is an area that I think will continue to be resistance, so any signs of exhaustion will probably come as an opportunity to short this market yet again. After all, the longer-term trend is most certainly to the downside so that is what I will be following.

USD/JPY Video 29.12.20

The 50 day EMA sits just above the ¥104 level as well, so I do think that it is only a matter of time before that resistance takes over. That being said, we could get a bit of a “risk off” type of move to the downside as well, even though recently I think this has more to do with stimulus coming out the United States. All things being equal, I simply follow the trend, and that is by far the easiest way to make money from what I can see and all of my experiences. The target to the downside will be the lows again, near the ¥103 level, perhaps even the ¥102 level.

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