USD/JPY Price Forecast – US Dollar Continues to Chip Away at Resistance

The US dollar has rallied again on Monday against the Japanese yen in order to press this crucial ¥111 level, which is an area that of course is obvious resistance based upon the last couple of sessions, but when you look at the longer-term charts, you can see this has been an area that has been resistance previously. Ultimately, the market will try to break out, but quite frankly I think there is a ton of resistance at the ¥112 level as well. All things being equal, this is a market that I think continues to try to grind higher, but the keyword of course is going to be “grind.”

USD/JPY Video 29.06.21

If we break down from here, the ¥110 level should offer support, right along with the 50 day EMA. You can also make a strong argument for a market that is well supported underneath and is trying to form some type of channel. Ultimately, this is a market that I think will continue to see a lot of noisy behavior, but I think given enough time we will see the market eventually make up its mind for a bigger move, but right now it is likely that we will see noisy behavior more than anything else.

When you look at the monthly chart, it does make quite a bit of sense that the area above takes a lot of effort to get above it, so therefore I do not necessarily think it will be easy to make the move to the upside. That being said I think what we will more likely than not see going forward is a bit of a pullback, only to see buyers jumping in to pick it back up.

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