USD/JPY Price Forecast – US Dollar Gives Up Early Gains
The US dollar initially rallied a bit during the trading session on Monday to kick of the week, but then gave back the gains almost immediately.
The US dollar has initially tried to rally during the trading session on Monday but gave back gains rather quickly as we continue to see the ¥110 level offer a bit of resistance. Furthermore, it is worth noting is that the market has pulled back from the top of the channel that we have seen forming over the last several weeks. With that being the case, the market is likely to see more back-and-forth action in this general vicinity, with quite a bit of support underneath near the 50 day EMA. With that being the case, the market is simply continuing the same momentum and move that we have seen for some time, and with that being the situation I like the idea of buying dips to find value.
USD/JPY Video 01.06.21
On the other hand, if we can break above the shooting star from the Friday session, then it opens up the possibility of a move towards the ¥111 level. If we can get above there, then the market goes much higher. I think we continue to chop more than anything else though, as this pair is trying to work off a lot of the frothing this from before. If we do break down below that 50 day EMA, then I think the market goes down to the ¥107 level, or perhaps the 200 day EMA which is sitting just above there. All things being equal, this is a market that I do think favors the upside but obviously we have gotten a little bit stretched over the last couple of days and therefore I think this move is pretty much what you would expect.
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