USD/JPY Price Forecast – US Dollar Gives Up Early Gains

The US dollar has rallied a bit against the Japanese yen during the trading session on Thursday but gave back the gains just above the ¥114 level to show signs of hesitation. That being said, the market is likely to continue seeing a lot of noisy behavior, and therefore I think what we have is a situation where the market is likely to continue seeing a bit of sluggishness above. Beyond that, we have the ¥115 level, an area that has been important more than once. With this being said, I think that what we have is an opportunity to perhaps a short-term rally that probably is somewhat limited.

USD/JPY Video 17.12.21

As we get more “risk on” around the world, it does make a certain amount of sense that we have seen the Japanese yen gets sold off, but ultimately this is a market that I think will be a bit slower than some of the other currencies against the yen, due to the fact that the US dollar is starting to sell off against multiple other currencies, meaning that if this pair rises, it would be slower than other pairs such as the AUD/JPY, NZD/JPY, and so on. With that being said, I think that short-term dips probably do have support near the 50 day EMA though, so that something worth noting. Ultimately, the ¥112.50 level should be supportive, and therefore I suspect that we should continue to see that offer a bit of a buffer. Below there, then the market will more than likely go looking towards the 200 day EMA. All things been equal, this is a market that is probably going to slow down shortly, due to the fact that we are heading towards the end of the year.

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