US Dollar Recovers Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit during the course of the trading session on Friday to break above the crucial ¥122.50 level. By doing so, the market looks as if it is ready to go higher, perhaps reaching all-time highs again. However, it is also worth noting that this is an area that we have been consolidating for a while, so we may chop back and forth.

The size of the candlestick is rather impressive, now that the jobs numbers are out of the way we may get a continuation of this move to the upside. However, the ¥125 level is an area that has been massive resistance on longer-term charts, and therefore it is worth paying close attention to this area as a potential ceiling in the market. If we were to break above there, then it would obviously be a very bullish sign but right now it does not seem to be very likely.

On the downside, the ¥121.50 level has been supporting the market recently, but if we were to break down below there then it opens up a move toward the ¥120 level, which is a major round figure that a lot of people will be paying close attention to. The 50 Day EMA is above the ¥117.50 level and racing toward the ¥120 level.

You can see that the market is overextended, so at the very least we need to work off some of the massive fraud. If we were to take out the ¥125 level above, it would become a huge “buy-and-hold” type of opportunity. At this point, the market is likely to continue seeing that as a crucial hurdle, and we will see quite a bit of headline noise if we get above there.

USD/JPY Price Forecast Video 04.04.22

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