USD/JPY Price Forecast – US Dollar Falls Hard Against the Japanese Yen
US Dollar vs Japanese Yen Technical Analysis
The US dollar has fallen hard against the Japanese yen during trading on Thursday as we continue to see more of a “risk-off” attitude around the markets. The Japanese yen is considered a safe currency and, quite frankly, was oversold. We are seen a lot of downward pressure on all of the JPY-related pairs, not just this one. The more volatile Japanese yen pairs have fallen apart during the session, as one would expect. However, even the greenback is starting to struggle against the currency.
The ¥127.50 level should be an area of support, so I will be paying close attention to what happens in this area, as it will be the last place, we see the buyers jump in. If we break down below there, the market could fall quite drastically, reaching the ¥125 level. It is worth noting that the 50 Day EMA is sitting at the ¥125 level, and therefore you need to be very aware of that region. If we were to break down below, I would suggest that we are in for a much more crucial and dangerous pullback.
To the upside, if we were to break above the ¥130 level, it gives us a shot at breaking out to the upside. Regardless, this is a market that has been so overbought that I would think that a pullback is likely and quite welcomed by most participants. Keep in mind that this is a susceptible market to risk appetite, and there is a certain amount of “reversion to the mean” that one would expect.
USD/JPY Price Forecast Video 13.05.22
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