USD/JPY Price Forecast – US Dollar Continues to Build Consolidate of Move

The US dollar has pulled back a bit against the Japanese yen during the trading session on Wednesday to reach towards the ¥113.50 level. That is an area that should be somewhat supportive, as we have seen multiple times over the last week or two. The ¥112.50 level underneath could offer a bit of support, especially as the 50 day EMA is starting to race towards it. With this, I think that buying the dips continues to be the best way forward, but I do not know that this is necessarily indicative of US dollar strength. In fact, it is very likely that we would see this pair simply move right along with the Japanese yen against other currencies.

USD/JPY Video 28.10.21

There is also the possibility that we are forming a bit of a bullish flag, which would mean that this market probably goes sideways over the next couple of weeks. That is typically how this pair behaves, it will do nothing for several weeks at a time, and then get an impulsive move. At this point, it appears that we are trying to do so. Nonetheless, I look it dips as potential buying opportunities and will continue to do so as we see so much in the way of bullish longer term pressure. With that being the case, I think that you simply look for dips to take advantage of, or perhaps use this market as a way to gauge and Japanese yen strength or weakness that you can trade in other pairs. Ultimately, there is no way to short this market anytime soon.

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