USD/JPY Price Forecast – US Dollar Gets Hammered Against Yen

The US dollar has fallen significantly against the Japanese yen, as we have seen the yen strengthening against almost everything. This has been in reaction to the potential new variation of the coronavirus shutting everything down, which of course looks as if it has been a bit overdone. Keep in mind that the Americans were not at work on Thursday, so they are certainly not paying attention to their terminals on Friday morning in Asia. Because of this, I think the move was probably a bit over exaggerated, so it will be interesting to see how this plays out. There does seem to be a significant cluster of support near the ¥114 level, and we have stabilized in that general vicinity.

USD/JPY Video 29.11.21

If we can continue to find buyers in this area, then I think it makes quite a bit of sense that we will go looking towards the ¥115 level. Underneath, the 50 day EMA is racing towards current pricing, so I think that also comes into the picture as well. Underneath that, then we have the ¥112.50 level which is another support level that I have identified. Quite frankly, the market may be a little overdone in both directions at the moment, and this type of volatility probably will continue to be a factor between now and the end of the year. Typically, December is rather choppy anyways, so do not be surprised if we have a lot of noisy behavior over the next couple of days. Quite frankly, this is a market that will probably be all over the place but it is still very much in an uptrend and that is the one thing that you have to keep in the back of your mind.

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