USD/JPY Price Forecast – US Dollar Gives up Early Gains Against Yen
The US dollar initially tried to rally during the trading session on Wednesday but gave back gains to show signs of exhaustion. By doing so, it looks as if the ¥112 level will continue to see significant selling pressure, and a significant barrier. If we continue to see this action, is likely that we will continue to drift towards the 50 day EMA, which of course is a large indicator that a lot of people pay attention to, and it is starting to rise. The ¥110 level underneath that is the “floor the market” from what I see right now, extending down to the ¥109 level. At that level, you start to see the 200 day EMA come into the picture and therefore it would be a longer-term trend defining moment.
USD/JPY Video 07.10.21
All things been equal, this is a market that will probably be noisy in general, due to the fact that it is a fight between two safety currencies. Currently, the interest rates in the United States have been rising, and that does suggest that we will probably continue to see upward pressure. However, it is not until we break above the ¥112.50 level that you would see a bigger move, perhaps more of a “buy-and-hold” type of situation. All things been equal, this is a market that I think will continue to see a lot of noisy behavior, but ultimately, I think what we have here is a situation where we will continue to see choppy behavior, but that is the way it has been for quite some time now. With the jobs number coming out on Friday, that may be part of what keeps this market somewhat tame.
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