USD/JPY Price Forecast – US Dollar Continues to Find Resistance

The US dollar has rallied just a bit during the trading session on Wednesday, as we continue to see a tried to rally against the Japanese yen in general. Ultimately, the market is likely to see a lot of back and forth as we go through the holiday season, and of course the risk appetite has been all over the place. At this point, the market continues to see a lot of resistance at the ¥104 level, which is also where we would see the 50 day EMA crossing rather quickly. That being said, I think it is only a matter of time before we fade these rallies and continue to see short-term moves more than anything else.

USD/JPY Video 22.12.20

That being said, I think that this is a market that also has resistance at the ¥105 level, which of course is a large, round, psychologically significant figure. Looking at this chart, I think that it is obvious there is a massive “wall of selling pressure” between the 50 day EMA and the 200 day EMA, which of course has the ¥105 level sitting right in the middle of it.

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I have no interest in trying to fight this trend, although I will be the first to admit that it is very choppy and noisy on the way lower. With stimulus just been passed in the United States, there probably is not much in the way of a catalyst at the moment, but one thing to keep in the back of your mind is the fact that Chuck Schumer has already suggested that there might be more stimulus down the road.

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