USD/JPY Price Forecast – US Dollar Treading Water Against Yen

The US dollar has gone back and forth against the Japanese yen during the trading session on Thursday as we continue to see a lot of back and forth when it comes to overall risk appetite. Ultimately, this is a market that I think is trying to figure whether or not they can continue to push it lower, or if they are going to try to reverse the entire scenario. There is an argument to be made for the US dollar been oversold against multiple currencies, so you can imagine a scenario where it could get a bit of a relief rally. Quite frankly, that would be normal market behavior so I think that could cause some issues in this pair. This does not mean that I want to buy this pair, just that we may get a little bit of a short-term pop.

If we can break above the ¥104 level, we then could see a lot of resistance all the way to the ¥105, so therefore I am not looking to get long of this market anytime soon. Quite frankly, fun going to buy the US dollar I would probably do it against the Swiss franc as it is at a major support level on the monthly chart. Here in the USD/JPY pair, we still have further to go to the downside until we find massive amount of support. That being said, if we broke above the 200 day EMA I could be convinced to change my mind but right now I still think it is likely that we will see US dollar strength being easily traded in other markets instead of this one.