USD/JPY Price Forecast – US Dollar Continues to Power Higher Against Yen
The US dollar has initially pulled back just a bit during the course of the trading session on Monday, but then found enough support at the ¥110 level to turn things around and show signs of life again. Quite frankly, this pair will continue to move right along with risk appetite going forward, so if we get another push higher in a lot of the equity indices, then it is very likely that this pair will rally as well. However, you should keep in mind that the pair does have a significant amount of resistance above at the ¥111 level that extends to the ¥112 level. That is an area that goes back months, and I think it is going to be very difficult to get past that region. In other words, even though it does look like we are going to try to grind higher, I believe that it is very unlikely that this market simply slices right through it.
USD/JPY Video 27.07.21
In other words, this is a market that I think will grind its way higher, but not necessarily break out. After all, that would be changing the overall attitude of the market going back several years, something that I do not know if we are ready to do quite yet. Having said that, it will be interesting to see if that happens whether or not it can stick. If we break down below the ¥109 level, then I think the market probably goes looking towards the 200 day EMA and perhaps even lower than that.
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