USD/JPY Price Forecast – US Dollar Continues to Drift Lower

The US dollar initially tried to rally during the trading session on Thursday but gave back the gains in order to show a negative candlestick. It looks as if we are continuing the drift lower, and therefore I think it is only a matter of time before we go down to the ¥105 level. This is not to say that we get there overnight, but I do think that is a large round figure that the market will continue to be attracted to. I like the idea of fading short-term rallies more than anything else, so this is a market that I would trade based upon short term charts such as the 15 minute. Remember, both of the central banks are extraordinarily loose with monetary policy, so this is essentially a fight between a couple of lightweights. Because of this, you are better off trading both of these currencies against other ones, but in this market, it certainly looks as if it favors the Japanese yen, albeit slightly.

If we were to rally from here, it is not until we break above the ¥107.50 level that I would be impressed, so therefore I am not even looking for buying opportunities at the moment. Obviously, as something changes, I will let you know here at FX Empire, but right now it looks like fading those little short-term pops will probably continue to be the best way to trade this market, making sure to take profits relatively quick as well. Until something fundamentally changes, this is going to be more of a “grinding lower” type of market. #USD/JPY##USDollarWeakness#

Reprinted from Fxempire，the copyright all reserved by the original author.