USD/JPY Price Forecast – US Dollar Gets Hit

The US dollar got hit initially during the trading session on Thursday, as money continues to flow out of the United States stock indices. Having said that though, the market does look as if it is trying to find its footing and of course although the Japanese yen has been acting more like a safety currency all of a sudden, the reality is that there is much more impact on the Japanese economy in the short term then there is the US. I think at this point a lot of this is just money being forced from one border to another in order to close out positions.

USD/JPY Video 28.02.20

Looking at this chart, we could very well turn around and go looking towards ¥111 level, but we need to cross the ¥110 level first. A daily close above there it does instill a little bit of confidence, and it’s also possible that some of the short-sellers in the stock markets will have to close out their positions going into the weekend. That by its function may drive this price back up as well. Alternately, if the market breaks down below the 50 day EMA we could have the bottom fallout, and then go looking down to the ¥108.50 level. That’s a little less likely, but it is something that you need to be aware of as the Japanese yen typically acts as a safety currency, but with the coronavirus being in that region and so heavily represented, these days are quite normal as I’m sure you have noticed.