USD/JPY Price Forecast – The US Dollar Continues to Chip Away at ¥115

The US dollar has rallied a bit during the course of the trading session on Friday to break above the ¥115 level again, as it looks like we are going to set up for next year to be a very positive one for this year. Keeping in mind that the next couple of days might be a bit quiet, the reality is that the jobs number coming out on Friday will be a major driver of where we go longer term. Nonetheless, we are in an uptrend and that is obvious, so there is no point in trying to fight that anytime soon.

USD/JPY Video 03.01.22

If we do pull back from here, the 50 day EMA underneath will be the “floor the market” from what I can see, as the indicator is now hanging about the ¥113.75 level. At this point in time, I think any pullback will be thought of as a potential buying opportunity. It is obvious to me that we are trying to go higher over the longer term, but the reality is that in the meantime we may have a little bit of chopping around to do in order to build up the necessary momentum.

When you look at this chart, you should also keep in the back your head that it is a risk appetite based currency pair. It arrives as risk appetite increase is, and it will fall as people run to the Japanese yen for safety. As things stand right now, it certainly looks as if we are trying to go higher eventually, so I look it dips as value.

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