USD/JPY Price Forecast – Us Dollar Continues to Pressure the Midpoint of Consolidation

The US dollar has initially pulled back just a bit during the trading session on Wednesday but showed resiliency as we continue to see upward pressure. After all, the market has been in a longer-term uptrend for a while, and therefore it is likely that we will continue to see an attempt to get back to the highs. The ¥115 level above is going to be a major barrier, as it is an area where we have seen a lot of selling pressure over the last several months every time, we have gotten close to it.

USD/JPY Video 09.12.21

At this point in time, the market is likely to continue to see an attempt to get above there, and if we do it would be a nice longer-term “buy-and-hold situation” in this pair. However, it is very unlikely that we are going to see it happen easily. That being said, to the downside the ¥112.50 level seems to be significant support, and of course we have the 50 day EMA sitting just below. With that being the case, I think we continue to bounce around, but I do favor the upside in the short term, simply because it seems like we have plenty of people willing to jump on this market.

Keep in mind that the market is highly sensitive to risk appetite, so if we continue to see more of a “risk on” attitude in general, then it is very likely that this pair will eventually try to break out above that massive barrier. However, we get a sudden selloff when it comes to risk appetite, the Japanese yen tends to be bought.

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