USD/JPY Price Forecast – US Dollar Drifting Lower

The US dollar has initially tried to rally during the Friday session but gave back gains to show negativity against the Japanese yen. That being said, the market is likely to continue seeing somewhat downward pressure, due to the fact that we are overextended. I do not expect to see some type of massive selling opportunity, just that the market needed to come back down from sky high valuations. That being said, I think that the ¥112.50 level will offer a bit of support, and of course the 50 day EMA sitting underneath there will as well. That being said, this is simply an opportunity to pick up value more than it is anything else.

USD/JPY Video 25.10.21

To the upside, the ¥115 level continues to be a significant barrier to overcome, as it is a large, round, psychologically significant figure and of course an area that will attract a bit of attention. If we can break above the ¥115 level, then the market is likely to go much higher, as it would be a major breach of significant resistance going back several years. The market is one that I do not want to short, but I would be all over the idea of picking up dips as soon as they show signs of life again. The Japanese yen has been hit against almost everything, but markets do not go in one direction forever and that is the main lesson here, you simply need to be patient enough to get an opportunity to trade. At this point, I am probably going to be sitting on my hands for a few days.

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