USD/JPY Price Forecast – The US Dollar Continues to Consolidate
The US dollar has drifted a bit during the course of the trading session on Thursday as we continue to see consolidation against the Japanese yen. By doing so, the market looks as if it is trying to build up the necessary momentum to try to break out to the upside, but at this point it looks as if the ¥115 level is going to continue to be a major barrier that will be difficult to overcome. With that in mind, the market will continue to pay close attention to that area, and I think a pullback probably makes quite a bit of sense.
USD/JPY Video 29.10.21
After all, the market has been very strong as of late, but markets cannot go in one direction forever. With that in mind, I believe that we continue to see more of a “buy on the dips” mentality out there, and it could offer plenty of opportunities if you are patient enough.
The ¥112.50 level should continue to be relatively important, and I do think that it is only a matter of time before we start to see buyers enter that region. The 50 day EMA is racing towards their as well, so that gives even more credence to that concept. Ultimately, I think that the ¥110 level is what you should consider the “floor the market” and recognize that if we were to break down below there it would be a very negative turn of events for this pair. With that being said, be cautious and be patient. You should get an opportunity at lower levels.
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