USD/JPY Price Forecast – US Dollar Grinding Higher

The US dollar has rallied a bit during the course of the trading session on Wednesday as we are now above the ¥114 level. The market continues to see the ¥115 level above as a major barrier, and I think at this point it is going to be thought of more as a target as well. This does not mean that we are going to shoot straight up in the air, nor does it mean that it is going to be easy to get there. That being said, it certainly looks as if the buyers will come back every time we dip. At this point in time, I believe that the ¥112.50 level is going to be the “floor in the market”, and I would be surprised if we broke down below there.

USD/JPY Video 23.12.21

More than anything else, I think we are simply trying to grind our way to the upside, in what could be thought of as a potential channel, but regardless this is going to be like watching cattle, it is not going to be overly exciting, and it will move slow. Nonetheless, it certainly looks as if it does favor the upside so that is how I play this market. I would not put a huge position on but taking small dips for small trade certainly makes quite a bit of sense. All things being equal, the 50 day EMA should continue to offer support, so that is one area that I would be very interested in as far as picking up value is concerned. Keep in mind that this pair also has a little bit of risk appetite built into it as well, so it will be affected by other markets.

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