USD/JPY Price Forecast – The US Dollar Pulls Back From a Large Round Figure

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially tried to break above the ¥130 level on Thursday but gave back gains as traders have got a little bit ahead of themselves. The ¥130 level is an area that traders may look at through the prism of psychology, meaning that it will attract attention just due to the fact that it is a large, round, psychologically significant figure. Pulling back also makes a bit of sense as we are near the highs, and of course, have had three days in a row straight up in the air. Furthermore, we have the Non-Farm Payroll numbers coming out on Friday, which of course will bring out quite a bit of volatility.

At this point, the market is obviously in an uptrend, so you are looking for pullbacks that show signs of support or a bounce that you can start buying. Think of any drop in the market as a potential buying opportunity, but also recognize that things could get rather noisy during the announcement on Friday. The ¥127.50 level underneath should be supported, right along with the 50 Day EMA. Because of this, I would love to see a significant drop, but I don’t necessarily think we will get that type of opportunity.

Pay attention to shorter-term charts, they should give you a bit of a “heads up” as to when the buyers step back into the market. At that point, one would expect to see a significant amount of interest in the market, and perhaps even more momentum being built up. Regardless, I have no interest in shorting this market anytime soon.

USD/JPY Price Forecast Video 03.06.22

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