USD/JPY Price Forecast – The US Dollar Still Flagging for Higher Levels

The US dollar has gapped higher to kick off the trading session on Monday, as we ran towards the ¥114.50 level. Psychological resistance as it was the most recent high, but we have much more in the way of structural resistance at the ¥115 level. If and when we can break above there on a daily close, the market would likely be more of a “buy-and-hold” type of situation. All things being equal, the market should attempt to make that happen, but we have been so parabolic as of late it certainly makes quite a bit of sense that we would see some digesting in this general vicinity. With that being the case, the “bullish flag” forming suggests that we are likely going to make that happen given enough time.

USD/JPY Video 02.11.21

To the downside, if we were to break down below the ¥112.50 level, then the market will also have to challenge the 50 day EMA which could offer a bit of support. That being the case, I think that there would be plenty of value hundreds in that area. All things point to higher levels, but if we were to somehow break down below the ¥110 level, then it is possible that I could be a seller, and that would obviously be a major shift in attitude. That does not look very likely to happen anytime soon, so at this point it is simply a matter of looking for opportunities to get long of the market. This is a market that has gotten so far ahead of itself, you simply cannot be a seller under almost any circumstance.

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