USD/JPY Price Forecast – US Dollar Continues to Hover Around the Same Resistance

The US dollar has rallied a bit during the course of the trading session on Friday to reach towards the crucial ¥113.50 region, an area that has caused problems over the last week or so. That being said, we are in the middle of a larger consolidation area, so I do think that this is a scenario where we need to continue to go back and forth in order to try to figure out where we are going for a bigger move. That being said, the market is likely to see a lot of noisy behavior, with the ¥112.50 level offering a significant support barrier. To the upside, the market still sees the ¥115 level above as a major resistance barrier.

USD/JPY Video 13.12.21

If we can break above the ¥115 level, then it is likely that we could go much higher, but at this point in time it looks as if it is going to be difficult to make that happen. I think eventually we could go looking towards the ¥117.50 level, and then the ¥120 level given enough time. The market breaking down below the ¥112.50 level could reach down towards the 200 day EMA. The 200 day EMA sits just above the crucial ¥110 level, which is an area that I believe is the bottom of the overall uptrend. If we were to somehow break down below there, then I think this market unwinds for the longer term. That being said, I think over the next couple of weeks we probably do more back-and-forth than anything else as it is the end of the year.

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