Yahoo Finance USD/JPY Price Forecast – US Dollar Rallies Against Japanese Yen In Risk On Trading
The US dollar has gone back and forth during the trading session on Wednesday, as we continue to dance around the 50 and the 200 day EMA indicators. At this point, the market doesn’t necessarily look as if it is ready to go anywhere anytime soon, so I believe that the market will eventually have to make up its mind. In the short term though, the pair is better used as an indicator of Japanese yen strength or weakness. In other words, this pair is falling it means that the Japanese yen is strengthening, and you should be looking to buy the Japanese yen against currencies that are closer to support or resistance.
USD/JPY Video 09.04.20
At this point, we need to see this pair move a bit before we get into an area that is simply the same thing as flipping a coin. In other words, I would like to see this pair form a selling signal near the ¥105 level, or perhaps the ¥111 level. As we are in the middle of this big range, so therefore it’s very difficult to imagine a scenario that the market should be traded with any type of size. That doesn’t necessarily mean that the chart is useless, like I said it functions as a nice secondary indicator. Notice that the moving averages are essentially flat as well, so this is a very “neutral” type of situation. At this point in time, I will keep you up-to-date as to how I’m using this chart right now it shows neutrality.
This article was originally posted on FX Empire
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