USD/JPY Price Forecast – US Dollar Pierces ¥115 Level
The US dollar has rallied a bit against the Japanese yen during the trading session on Tuesday but has given back the gains as the ¥115 level continues to be a massive barrier. That being said, if the market can break above that level, then it is likely that we will see more of a “buy-and-hold” situation. Until then, the market is likely to see the occasional pullback in order to build up the necessary momentum. If and when we do break higher, then it becomes a longer-term play that is more of an investment than a trade.
USD/JPY Video 24.11.21
To the downside, it appears that the ¥113.50 level has offered support, right along with the ¥112.50 level. It is also worth noting that the 50 day EMA sits right between this to levels, so I think with all of that and the recent structural support, it makes a certain amount of sense that it offers a short-term floor. A breakdown below that level then opens up the possibility of a move down to the ¥110 level, which I look at as the absolute bottom of the trend. Anything breaking down below that level could change the entire outlook of this pair, but right now it does not look like that is going to happen anytime soon.
Quite frankly, I think this continues to see plenty of buyers on dips until we can make a longer-term decision about the crucial level just above. The interest rate differential will continue to be a big player in this market, so pay close attention to whether or not interest rates in America continue to rally over the longer term or if they fail.
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