USD/JPY Price Forecast – US Dollar Pulls Back Against Japanese Yen

The US dollar has fallen during the trading session on Friday against the Japanese yen, as we are pressuring the ¥106.50 level. This is an area that cost support during the Thursday session, but it looks like it is going to be broken now. This would continue the overall downward malaise that we have seen in this pair, due to the fact that the Federal Reserve is flooding the market with greenbacks. Looking at this chart, I believe that this pair is probably going to go looking towards the ¥106 level, and then possibly even as low as the ¥105 level.

USD/JPY Video 17.08.20

The 50 day EMA is currently slicing through the candlestick so that something worth paying attention to as well. All things being equal, I believe the market will simply fade rallies, as the US dollar continues to be on its back foot. However, if we were to break above the 200 day EMA which is slightly above the crucial ¥107.50 level, then it could change a lot of things.

All things being equal, the US dollar will remain on its back foot as the Fed continues to flood the market with those greenbacks. The Bank of Japan is of course very loose with its monetary policy as well, but at this point it seems as if the Forex markets are focusing solely on the Federal Reserve as the main driver. There is also the possibility that some of the selling was due to profit-taking as we head towards the weekend.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

• GBP/JPY Weekly Price Forecast – British Pound Slams into Big Figure

• Oil Loses Ground Ahead Of The Weekend

• Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Kill Time

• Gold Weekly Price Forecast – Gold Markets Pullback After Parabolic Move

• Gold Price Prediction – Prices Ease and Settle Down Nearly 5% for the Week

• GBP/JPY Price Forecast – British Pound Continues to Struggle With Big Figure