USD/JPY Price Forecast – US dollar continues to gain against Japanese yen

The US dollar has rallied significantly during the trading session again on Tuesday, but is starting to get into an area that will have a lot of resistance built in. I think that given enough time, we will probably pull back a bit and that could be a buying opportunity. Paying attention to the overall global risk appetite will be crucial when it comes to this pair, as the Japanese yen is considered to be a safety currency. The interest rate differential certainly favors the US dollar, and of course we have several support levels underneath.

USD/JPY Video 28.11.18

Those supported levels include the ¥112 level, which I think it extends down to the ¥111.50 level based upon historical price action. We also have an uptrend line in that area, and of course the crucial 200 day EMA. I think at this point short-term pullbacks will continue to find value hunters underneath. However, there is a lot of resistance above built into the ¥114.50 level above that extends to the ¥115 level. I think that the market continues to be very choppy with a slightly upward bias, based upon interest rate differentials more than anything else. I do not look to short this market until we break down below the 200 day EMA, which is far below right now, currently hovering near the ¥111.50 level. If we do break down below there, I think the market will probably go looking towards the ¥110 level after that.