USD/JPY Price Forecast – US Dollar Continues to Languish Just Below Massive Resistance

When you look at the longer-term chart of the US dollar against the Japanese yen, there is an obvious resistance barrier right around ¥115. As long as we cannot break above there, I think you are simply in a bit of a holding pattern. That being said, what I do uses chart for is a secondary indicator on Japanese yen strength or weakness. If we were to break above the ¥115 level, then it would show extreme weakness in the Japanese yen, so we would probably not only see this pair turn into a “buy-and-hold” situation, but then would also send other Japanese yen related pairs much higher.

USD/JPY Video 23.11.21

On the other hand, we do break down from here, it is likely that the 50 day EMA will come into the picture. Currently resides at the ¥113 level, which also backs up the idea of the ¥112.50 level as significant support. One thing is for sure, we are building up the momentum to make the next big move. Once that move happens, it will be obvious, and traders will jump “all in” to one direction or the other. That being said, you could make an argument for a little bit of a bullish flag, so it does still suggests that we are likely to go to the upside. That does not mean that it is going to be very easy, but as things stand right now it does lead that direction right now. To the downside, the “bottom of the floor” is to be near the ¥110 level, and as long as we stay above there I think the market still has a bit of an upward bias from a longer-term standpoint.

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