Yahoo Finance USD/JPY Price Forecast – US Dollar at Fair Value Against Japanese Yen
The US dollar has done almost nothing against the Japanese yen, as we are sitting at the ¥107.50 level. Ultimately, the market has seen quite a bit of magnetism to this level and it seems as far as this pair is concerned if you get a little bit too far from that area you can simply reverse the flow and try to get back to it. The 50 day EMA is sitting right here as well so that of course is something that will attract a lot of attention. Above, we have the 200 day EMA which has offered resistance during the week, and below we have the ¥106 level which has been supportive for some time, forming a bit of a “double bottom” underneath.
USD/JPY Video 06.07.20
This pair sees both of those moving averages sloping ever so slightly negative, so I suspect we could see a little bit of negativity in this market, but I do not anticipate anything major. Quite frankly, the easiest way to use this chart is to determine whether or not the Japanese yen is going to strengthen or weaken against most other currencies. For example, if this pair starts to drop somewhat, then I might go looking to short other JPY related pairs.
I might short something like the AUD/JPY or the GBP/JPY pair instead because it simply is no volatility here. This is an argument between two safety currencies, and with the massive amounts of stimulus coming out of both central banks and the concerns around the world, it is hardly a surprise this pair has not really done much of the last several weeks.
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This article was originally posted on FX Empire
