USD/JPY Price Forecast – US Dollar Gets Hammered

The US dollar has gotten hammered during the trading session on Tuesday, slicing through the ¥105 level. This is an area that of course attracts a lot of attention due to the fact that it is a large, round, psychologically significant figure. Also of note is the fact that we failed at the 200 day EMA. I suggested that we could see a potential pullback from that level, and now we are starting to see that play out. I think that the 50 day EMA underneath could be support going forward, and I think that area would be interesting to pay attention to due to the fact that not only is it a technical indicator, but we also have the uptrend line underneath that had previously broken through.

USD/JPY Video 10.02.21

Ultimately, I think that if this market does find support underneath at that uptrend line, it would be the sign of a major trend change. I think that the next couple of days will be crucial for the longer-term outlook for this pair, so I will be waiting to see if I get some type of supportive candlestick that I can take advantage of. On the other hand, if we were to turn around a break above the couple of shooting stars at the 200 day EMA, that would also be extraordinarily bullish. At this point, I do not have any interest in shorting quite yet, but I will pay close attention to the downtrend line and how we react to that general vicinity. For now, I am on hold, but I most certainly am paying close attention to this pair because it may be the next big trade.

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