USD/JPY Price Forecast – US Dollar Gives Up Early Gains
The US dollar initially tried to rally during the trading session on Monday but gave back gains near the ¥110 level. The market continues to look at the ¥110 level as an area of importance, so it should not surprise you at all to see that we have rolled over again. At this point in time, the ¥109 level underneath continues to be an area of support, right along with the ¥110.75 offering a significant amount of resistance. With the ¥110 level in the middle being a bit of a magnet for price, it looks as if nothing has really happened quite yet to discern where we are going longer term.
USD/JPY Video 21.09.21
That being said, it is worth noting that the market is currently looking at the 200 day EMA underneath as significant support, although it should also be noted that the 50 day EMA has gone sideways for quite some time, meaning that we are still stuck in the same meaningless range. Eventually we will break out, but until then it simply going to be a short-term range bound type of situation. With this being the case, the market is going to continue to be very noisy, so you will have to be somewhat nimble to take advantage of a well-defined range.
I do believe that it is only a matter of time before we get a bigger move, probably coinciding with the overall risk appetite of the markets. The pair does tend to favor the Japanese yen it in times of concern, so that of course could be something worth paying attention to as the Chinese credit situation continues to become headline news.
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