USD/JPY Price Forecast – US Dollar Continues to Levitate Against Yen

The US dollar has gone back and forth during the course of the trading session on Thursday as we continue to see bullish pressure on the US dollar, but we are without a doubt overbought at this point. I think a pullback does make a certain amount of sense, especially as we approach the ¥112 level. That is an area that has been resistive previously, so it would make sense that if it turned around the market, lease for the short term. A little bit of a pullback would make a certain amount of sense as value hunters will be looking to get involved, so I think that even if we do break down a bit it is very likely that we will see support.

USD/JPY Video 01.10.21

In fact, I think it is not until we break down below the ¥110 level that you would have to be seriously concerned about the market. The 50 day EMA is sitting just above the ¥110 level and is sloping higher. That of course is a good sign and therefore it is likely that we would see technical traders paying close attention to that large, round, psychologically significant figure as well. The overstretched attitude of the market needs a little bit of correction, and it is very possible that we are getting ready to see that. Nonetheless, I think that if you are patient enough, you should get a nice buying opportunity to pick up the dollar “on the cheap” over the next several sessions. I would be cautious and build up a position slowly one I wanted to enter this market.

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