USD/JPY Price Forecast – US Dollar Continues Grind Towards 115 Yen
The US dollar has rallied a bit against the Japanese yen during the trading session on Friday, but as you would anticipate, there was not much going on as far as movement. After all, being Christmas Eve means that almost nobody was trading but it did show that we still have a proclivity to go to the upside. At this point, I think we are going to go looking towards the ¥115 level, perhaps trying to get there next week.
USD/JPY Video 27.12.21
Pullbacks at this point should have plenty of support, at least all the way down to the 50 day EMA which is currently hanging about the ¥113.50 level. This has been a very choppy move recently, but that is not that uncommon for this pair. The pair does have a certain amount of risk appetite built into it, so if the markets are willing to put on risk, it should rally. From everything that I have seen as of late, but certainly look as if they are.
If we got some type of significant selloff, I think it would be limited to the ¥112.50 level, where we have seen so much support as of late. That would take something rather special this time year, as I think it is more likely than not we are to simply going to drift back and forth over the next three or four trading sessions. Be cautious about your position size, I have seen retail traders get wrecked getting too big in these types of moves, especially if slippage becomes a major issue.
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