USD/JPY Price Forecast – US Dollar Gaps Higher to Kick Off the Week
The US dollar initially gapped higher to kick off the trading session on Monday, as traders shook off a lot of the noisy behavior on Friday. We turned around to test the 50 day EMA underneath, but then rallied significantly to form a bit of a hammer. This does suggest that perhaps the buyers are coming back, so it will be interesting to see whether or not they can hang on to the gains. One thing is for sure, it certainly looks as if we are going to try to do that very same thing. Because of this, the market is likely to see a lot of upward momentum eventually come into the picture, especially as we had such little in the way of volume on the Friday session as it was essentially a holiday as it is the day after Thanksgiving.
USD/JPY Video 30.11.21
To the downside, I believe that the ¥112.50 level underneath would be supportive, as it is an area where we have seen a little bit of a bounce, but as long as we can stay above there is a good shot that we continue to see buyers jump into the picture in order to continue the overall uptrend. The ¥115 level above is an area that has been important more than once and is the gateway to much higher pricing. If we break down below the 100 will ¥0.50 level, then it is possible that we could drop towards the 200 day EMA underneath, which is sitting just above the ¥110 level. Keep in mind this pair does tend to move with risk appetite.
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