Advertisement
Advertisement

USD/JPY Price Forecast – US Dollar Continues to Grind Higher

By:
Christopher Lewis
Published: Jun 14, 2021, 14:12 UTC

The US dollar has rallied a bit during the trading session on Monday to kick off the week, simply grinding away in an upward channel that has been there for a while.

USD/JPY Price Forecast – US Dollar Continues to Grind Higher

In this article:

The US dollar has rallied a bit during the trading session on Monday to show signs of life again, as we continue to march right along the uptrend and channel that we have been in for a while. Because of this, I think the market is eventually going to reach towards the top of this channel, which coincides quite nicely with the ¥111 level above. That was the recent high, and that of course takes a certain amount of sense that we would see an attempt to get back there again.

USD/JPY Video 15.06.21

To the downside, the 50 day EMA sits at roughly ¥109, and has been very reliable recently. In fact, you can also make a bit of a trendline using that EMA, so it makes sense that people will continue to pay close attention to it. If we were to break down below the ¥109 level, then I think ¥108 makes the most sense, as the 200 day EMA is racing towards that area, which coincides quite nicely with the 38.2% Fibonacci retracement level.

With that being the case, the market is likely to continue the overall pattern that we have been in for a while, and therefore I think we will eventually find a reason to change the overall attitude to either be more bullish or bearish, but right now as we are sitting in the summer doldrums, I think it makes sense that we just continue more of the same, and I believe that we simply follow the overall pattern going forward, and therefore I would keep this simple and essentially follow what has been going on.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement