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USD/JPY Price Forecast – Quietly Heading Into Christmas

Christopher Lewis
·2 min read

The US dollar has rallied just a bit during the trading session on Thursday as we continue to grind door to the ¥140 level. The ¥104 level has been important more than once, so it should not be a huge surprise that we may go back there to test that area for resistance. What is even more interesting is that region is the 50 day EMA is starting to reach to the downside. In fact, it will only act as reinforcement for this resistance as traders run out of momentum once we get there.

USD/JPY Video 28.12.20

Do not think that we will simply stop at the ¥104 level, it is just the general “region” that we will start to see selling pressure, perhaps extending all the way to at least the ¥105 level. Because of this, I am simply looking for signs of exhaustion that I can take advantage of, as we have been in a long term downtrend for ages now. Stimulus coming out of the United States and of course the appeal of the Japanese yen as a safety currency, so there are a couple of different reasons to think that we may fall. After all that being said, it just simply following the trend.

To the downside, I think that once we break to a fresh, new low we will make a move towards the ¥102 level, an area that has been important in the past. That being said, this is not a quick moving pair most of the time, as you can see, we have been grinding back and forth. I anticipate that we will continue to see more of the same behavior going forward.

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

This article was originally posted on FX Empire

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