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

The US dollar has initially tried to rally during the trading session on Wednesday but has struggled near the ¥114.50 level. This is an area that will catch a lot of attention, because it has been so important more than once over the last several years. If we can break above the ¥115 level, then it is likely that we will take off to the upside. I do not necessarily think that is the easiest thing in the world to do, so a pullback would make a certain amount of sense, especially considering that we had been parabolic to the upside to get to this level.

USD/JPY Video 21.10.21

The ¥112.50 level underneath is an area that I would anticipate seeing a bit of support at, so it will be interesting to see how that plays out. I think that area holds, but if it does not then we have the 50 day EMA coming into the picture. That indicator is sloping higher, and of course is followed widely by technical traders around the world, and then that of course is backed up by the ¥110 level. As long as we can stay above ¥110, then it is likely that we stay in an uptrend, although that big of a pullback might slow things down quite drastically.

On a breakout above the ¥115 level, this is a market that would more than likely enter more of a “buy-and-hold” type of situation going forward, as the market clearly has a lot of resistance that it would be breaking through, and I would be a multi-year event under most circumstances that I would foresee.

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