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

The US dollar has rallied a bit against the Japanese yen during the trading session on Thursday as we have broken above the ¥111 level. At this point time, it looks like there is a lot of resistance is going to come in to play, as it extends all the way to the ¥112 level. With this being the case, the market is likely to continue to see a lot of noise in this general vicinity, so I think at this point in time it will be very sluggish to the upside but eventually we could find ourselves going much higher. However, it is also worth noting that this has been an area of extreme trouble in the past.

USD/JPY Video 02.07.21

Underneath, if we were to break down below the ¥110 level, then it is likely that the market could break towards the 50 day EMA. At this point in time, the market is likely to see a lot of negative pressure, and we could see this market fall rather drastically. Having said that, I do not expect to see that in the short term though, and I think that pullbacks at this point will continue to attract a lot of buying pressure. With that in mind, I like the idea of simply buying dips and taking short-term profits as his market looks to be very choppy. Keep in mind that the jobs number makes this market go crazy at times, so you will have to be very cautious about your position size heading into that announcement.

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