USD/JPY Price Forecast – US Dollar Finds Buyers On Dips Against Japanese YenThe US dollar has pulled back a bit during the trading session on Tuesday but found support below the 1.10 level to turn things around and show just how bullish this market truly is.
The US dollar has rallied after initially pulling back below the ¥110 level. The market looks very likely to continue going higher but we are a bit overall stretched at the moment, so don’t be surprised at all to see this market continued to pullback occasionally, but overall it’s very likely that the market will find plenty of momentum eventually to go to the upside. If and when it does, the market is likely to go looking towards the gap at the ¥111 level, an area that will offer a significant amount of resistance. However, I do believe that we break above there and then go looking towards the ¥112.33 level, which is the 100% Fibonacci retracement level as shown on the chart.
USD/JPY Video 22.01.20
To the downside, even if we do break down below the ¥110 level again, it’s very likely that the ¥109.60 level will offer support, and then the 50 day EMA which is turning higher and racing towards current pricing. It is near the ¥109.11 level, but it’s trajectory is most certainly very bullish. Because of this, I think that it’s only a matter of time before we find enough value hunting underneath the turn this thing around on a pullback. If we do break above the shooting star from the Friday session however, then we will have another impulsive move to the upside. I believe that this market is probably best traded on short-term charts, offering a “buy on the dips” type of short-term trading strategy environment that you can take advantage of over the next several weeks.
Please let us know what you think in the comments below