USD/JPY Price Forecast – US Dollar Continues to Grind Against Japanese Yen

The US dollar has rallied again during the trading session on Monday, as we continue to see it rally against the Japanese yen to go looking towards the ¥115 level. That is an area that has been important multiple times, so it will be interesting to see whether or not we can break through there again. If we do, that would be a very strong sign and it could send this pair much higher but between now and New Year’s Day it might be a tall order to make that happen.

USD/JPY Video 28.12.21

Pullbacks at this point in time should continue to find plenty of buyers though, all the way down to at least the 50 day EMA which currently sits at the ¥113.50 level. We have accelerated a bit as of late, but some of this could be due to a lack of liquidity, so I do not know if I would read too much into it. All things being equal, this is an uptrend and that is probably the most important thing to keep in the back of your mind, but the next couple of days will be very thin and probably nonsensical to say the least. The real move will be made after New Year’s Day, so between now and then I would not expect too much beyond a gentle grind to the upside.

The market cannot be shorted anytime soon, not the way that things have been going. That being said, if we were to somehow dropped below the ¥112.50 level, then that could change everything but that is not going to happen in the next couple of days.

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