The US dollar continues to fail to hold on the gains against most currencies, and of course the Japanese yen will be any different. That being said it looks like the market will probably go testing the ¥105 level during the session, and perhaps even lower than that, reaching down towards the ¥104.30 level. If we can break down below there, this pair is going to go looking towards the 100 to yen, which I do think we hit eventually. Granted, the Japanese yen is not exactly the most exciting currencies to own but at this point the US dollar is failing against almost everything.
USD/JPY Video 06.08.20
The original signal was the Monday candlestick that ended up forming such a perfect shooting star. Now that we are breaking below the bottom of that range, it does suggest that we probably have further to go to the downside. I believe that the Federal Reserve working against the value of the US dollar will continue to be the main theme of the Forex markets, and of course that will be any different here. From the other side though, if we were to break above the ¥107.50 level, it would obviously change everything. I highly doubt that happens, but it is the other side of the coin that we always need to keep an eye on. With that being the case, I like the idea of fading short-term rallies and have been doing so for the last several days. As far as this market is concerned, I do not have any interest in trying to buy.
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This article was originally posted on FX Empire
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