USD/JPY Price Forecast – US Dollar Noisy Against Japanese Yen
The US dollar has been back and forth against the Japanese yen during the trading session on Wednesday as we try to figure out what we are going to do about risk. Quite frankly, this is probably going to continue to be a very noisy market due to the fact that both of these currencies are considered to be “safety currencies.” Because of this, it is difficult to imagine a scenario where we get a clear winner based upon the noisy volatility that we have at the moment, but when you look to the longer-term charts, it can give you a bit of a “heads up” as to where we should be trading.
USD/JPY Video 29.10.20
When you look at the overall attitude of the market, it has been in a downtrend for some time. The market has a lot of support at the ¥104 level, and it is very likely that we will eventually break down below there. If we do, then it is likely that we go down to the ¥102 level which is of course where we had bounced from significantly in the past, so therefore one would have to think there will be a need to “retest” that area.
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The Japanese yen is considered to be the ultimate safety currency by a lot of Forex traders, but there is also the possibility of stimulus weighing upon the idea of the United States dollar eventually. Regardless, this is a downtrend that you should not be fighting, and it has paid quite well to fade short-term rallies that show signs of exhaustion. That being said, the ¥104 level has been very difficult to break.
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