US Dollar Continues to Find Buyers Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during trading on Friday but has found buyers near the ¥128 level, offering the possibility of a continuation of the overall trend. Looking at the chart, it is obvious that the uptrend is still very much intact, and this suggests to me that we could see a continuation towards the crucial ¥130 level. That is a large, round, psychologically significant figure, but at this point, it is obvious that the market is getting a bit stretched.

Quite frankly, the best thing that we could see in this market right now is either a pullback or some type of sideways motion to work off the froth that is in the market. Any pullback at this point could open up the possibility of a move to the ¥125 level, which was previous resistance. That resistance should have a certain amount of “market memory” when it comes to the possibility of support. The 50 Day EMA is currently threatening to reach the ¥122.50 level, which is an area that has a cluster of support and resistance as well.

Regardless, it is almost impossible to think about shorting this market, and therefore dips come into the picture. The market is so overextended that it is difficult to get long at this point either because quite frankly this is a market that is probably setting up for a drastic pullback. If you are an Elliott Wave trader, the market could be correcting the third wave, but that comes down to your style. Quite frankly, this is a market that looks very bullish, so either way, you have to look at the short-term pullback as a buying opportunity.

USD/JPY Price Forecast Video 25.04.22

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