USD/JPY Price Forecast – US Dollar Pressing 105 JPY Again

The US dollar has rallied a bit against the Japanese yen during the trading session on Wednesday to break above the ¥105 level. That being said, it certainly looks as if we are struggling to get above there and the shooting star from the previous session also shows it as potentially troublesome. However, if we do break out above the highs of the previous session, we will then go looking towards the 200 day EMA. Looking at the chart in general, you can see that the ¥105 level is an area that will matter from a longer-term standpoint and quite frankly it is a large, round, psychologically significant figure.

USD/JPY Video 04.02.21

The market breaking above the 200 day EMA above would be extraordinarily bullish and could be a major change in attitude. On the other hand, if we break down from here, we probably go looking towards the ¥104 level, which is an area of significant importance previously, and of course there is a 50 day EMA. If we break down below there, then we continue the overall long-term trend, but you can even make an argument for a return to the ¥104 level just due to the fact that there was a downtrend line in that general vicinity. I think at this point we are trying to make some type of decision for a bigger move and therefore I think that we are going to continue to see volatility and the pair bounce around as it looks for the longer-term direction. While I may not necessarily be trading at right now, I am certainly keeping an eye on it as I think we could see a bigger move.

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