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

The US dollar has rallied a bit against the Japanese yen on Thursday again, showing signs of life. The market looks as if it wants to go towards the ¥115 level, which of course is a large, round, psychologically significant figure. The ¥115 level is an area that has been important multiple times, so I do think that it will continue to offer plenty of resistance above. All things being equal, I think we go looking towards that area, but it might take a while to get there. The 50 day EMA underneath continues offer support, as it is grinding higher, and I think we are simply going to round-the-clock and go looking towards the ¥115 level.

USD/JPY Video 24.12.21

To the downside, the ¥112.50 level is of course supportive, as we have bounced from there recently. That being said I do not think we get down there between now and the end of the year but if we do, I would anticipate that there should be plenty of buyers. At this point in time, I believe that this is more of a buyer on the dips type of scenario going forward. This time year is somewhat thin as far as liquidity is concerned, so need to be cautious with your position size but the nice thing about this pair is that it is in such a well-defined uptrend as of late. Again, I am not looking for something major here, just more of a gentle grind to the upside between now and New Year’s Day. Once traders come back from the holidays, things might change, but between now and then I am not expecting a lot of noise.

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