USD/JPY Price Forecast – US Dollar Continues to Test Major Resistance Barrier

The US dollar has rallied a bit during the course of the trading session on Monday, giving back some of the gains rather quickly though. That being said, we are continuing to fight the ¥115 level, an area that has been a barrier for quite some time. We could not quite chip away at a brand-new high, but it certainly looks as if we are building up the effort to do so. If we do make a fresh, new high, this market is set to become more of a buy-and-hold type of situation.

USD/JPY Video 04.01.22

In the meantime, we may get a little bit of a pullback in order to pick up the necessary momentum, but I think it would take quite a bit of effort to finally take off to the upside. If we simply shot straight up in the air, it probably would be a bit much to take in, as it would be a complete blow off. We would need some type of catalyst to make that happen and of course sustain it.

To the downside, we have the 50 day EMA to pay attention to, which is closer to the ¥113.50 level. It is rising, so it should be somewhat supportive and therefore I think it is probably only a matter of time before you would see buyers jump in based upon some type of value proposition or at least an attempt to pick up momentum yet again. As far as selling is concerned, we are quite there yet, and therefore I am only looking at this through the proposition of value. Keep in mind that this pair does have a significant sensitivity to the jobs number coming out on Friday.

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