The 22-year-old has started three times this season and has been substituted in all three with United either at level or behind. James was replaced by debutant Edinson Cavani against Chelsea.
James played poorly for most of the calendar year and Leeds United were interested in signing him towards the end of the transfer window. Solskjaer is however ready to be patient with the Welshman.
“Dan’s confidence is high,” Solskjaer said. “Because he starts the matches with the quality of the players with whom he is in the team. Today was one of those days that he played against good players as well, he had moments and we continue to work.
“Dan has had a great impact at the club and we look forward to developing him further. ”
United are winless in their last five Premier League games at Old Trafford and host RB Leipzig in the Champions League on Wednesday ahead of Arsenal’s visit on Sunday.
Southampton and West Ham won deserved draws at the end of last season and Crystal Palace triumphed before Tottenham beat United 6-1. Their last home victory came in the Europa League round of 16 second leg against LASK on August 5.
“We have difficult opponents, it’s true, we have RB Leipzig in the Champions League and then Arsenal, so two more big games,” added Solskjaer. “Tough games, but we’ll make sure we’re ready for them.
“Good preparation, as we always do, and see where we are. “