USD/JPY Price Forecast – US Dollar Continues to Press Ever so Higher
The US dollar has drifted around during the trading session on Thursday, which makes quite a bit of sense considering that it is a major US holiday, so a lack of momentum would not be a huge surprise. The ¥115 level is an area where we have seen a lot of resistance in the past, so now it appears that the level could offer a bit of support at this point in time. Obviously, we are in an uptrend so there is no point in trying to fight it. In fact, any time this market pulls back I think there is a nice opportunity just waiting to happen.
USD/JPY Video 26.11.21
Underneath, the 50 day EMA is sloping higher and should offer plenty of support. Furthermore, the ¥112.50 level offers plenty of support as well, as we have bounced from there recently. All things been equal, I have no interest in shorting this market, but I also recognize that we have to pay close attention to any major shift. As things stand right now, the US dollar continues to strengthen against almost everything, so the Japanese yen probably will not be any different.
The ¥115 level is a level that has been important multiple times and had been a major resistance barrier over the course of several months. This goes back a couple of years, on-and-off being a major top of the market. The fact that we have pierced this level is a pretty strong sign that something big is brewing. At this point, I look at pullbacks as buying opportunities, because we could go looking towards ¥117.50 rather quickly.
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