USD/JPY Price Forecast – US Dollar Rallies Hard Against Japanese Yen
The US dollar has recovered quite nicely against the Japanese yen during trading on Friday, to break back above the ¥105 level at the open in New York. That is a pretty significant turnaround, but at this point it still looks as if there is selling pressure facing the greenback against almost everything, and it is possible that this may have been a little bit of profit-taking. There were some lackluster Japanese economic numbers during the Asian session, but quite frankly the FX markets are paying attention to the Federal Reserve, nothing else.
USD/JPY Video 03.08.20
As long as the Federal Reserve is willing to flood the markets with US dollars, it is likely that the greenback will continue to lose value against most currencies, including the Japanese yen despite the fact that it is considered to be a safety currency. With all that being said, it is worth paying attention to this general area because the ¥105 level has a certain amount of psychological importance built into it and of course there is the longer-term triangle shape that we have been paying attention to for some time.
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With that in mind, I anticipate that we may get a short-term bounce, only to turn around and rolled right back over near the ¥106 level, maybe even ¥106.50 above. I do not have any interest in buying this pair, I think we are going to have a nice selling opportunity sometime next week as the market is certainly bearish of US dollars. We may have just gotten a little bit ahead of ourselves but that seems to be the case with the US dollar against other currencies such as the British pound and the Euro.
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