USD/JPY Price Forecast – US Dollar Breaks the ¥115 Level

The US dollar has rallied a bit during the course of the trading session on Thursday to break above the psychologically important ¥115 level. We have broken above here before though, so keep that in mind. If we can clear to a fresh, new high, then it is very likely that this pair will simply continue to grind higher for more of a longer-term “buy-and-hold” type of situation. However, the lack of liquidity this time a year is something that you must keep in the back of your mind. I do not like the idea of taking too much risk in the last couple of days of the year, when I know that most big players are out of the picture. I also know that they will be putting on risk next week, and therefore you can start to get an idea of how the year may go.

USD/JPY Video 31.12.21

At this point, I am hoping to see some type of short-term pullback that I can take advantage of and start buying. I do believe that we are eventually going to break out and go much higher, but right now it is a bit of a fight. Once we get the jobs number out of the way next week, then I think we have a really good shot at seeing a significant amount of momentum and confidence in the next move. If we do pull back, I believe that the 50 day EMA is going to end up being massive support underneath so I think the downside is somewhat limited.

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