USD JPY Price Forecast – US Dollar Pulls Back Against Japanese Yen After Breaking Out
The US dollar has pulled back just a bit during the course of the trading session on Thursday to reach down towards the ¥115.75 level. At this point, there are plenty of buyers underneath, but that does not necessarily mean that we take off and go straight up in the air. That being said, I think there is even more support underneath at the ¥115 level, which of course is a large, round, psychologically significant figure and was a major barrier previously.
USD/JPY Video 07.01.22
All of that being said, I believe that dips will be bought, and this pair will continue to climb based upon not only higher interest rates in the United States, but quite frankly risk appetite as well. Remember, the Japanese yen is considered to be a major safety currency and will be traded as such. All things been equal though, we have broken out and of course are in a major uptrend, something that has to be kept in the back of your mind at all times. The 50 day EMA is currently at the ¥114 level and rising.
Ultimately, I think that this market goes much higher, perhaps reaching towards the ¥117.50 level. That is an area that has been important in the past, so I would expect it to be a bit of a barrier. Nonetheless, it looks like we are simply grinding away sideways in order to build up inertia to go higher given enough time, but right now it looks like we are simply spinning our wheels and waiting for the jobs number to come out on Friday morning.
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