USD/JPY Price Forecast – US Dollar Continues to Rally

The US dollar has rallied a bit against the Japanese yen during the trading session on Thursday as it looks like we may go looking towards the ¥105 level. The ¥105 level has been massive resistance in the past, and we have the 200 day EMA racing towards it again. That being said, I think that if you are patient enough you will probably get a nice selling opportunity based upon some type of pullback above. I think we may have a little bit of a relief rally ahead, but I think it is only a matter of time before the sellers return. I am especially interested in the ¥105 level, because if we blow through there then we are probably talking about a bigger trend change.

USD/JPY Video 29.01.21

I am currently watching the US Dollar Index, and a breakout above the 91 handle might convince me to start buying over here as well, but to be honest if I were to buy the US dollar against the currency I do not know if this would be the one. I might be more interested in buying the US dollar against the Canadian dollar because it is at a much more tenable spot on the chart. Nonetheless, there is an argument to be said that we are trying to form a bit of a bottoming pattern, but I think it is far too early to say that here. Quite frankly, all it would take us some type of massive “risk off event” to have people piling back into the Japanese yen. For now, I look at this as a simple correction in a longer term downtrend.

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