USD/JPY Price Forecast – US Dollar Pulls Back Against Yen

The US dollar initially tried to rally during the course of the trading session on Thursday to break above the ¥111 level, only to turn around and fall quite significantly. At this point in time, we are trying to chip away at major barrier, and it could take several attempts. Short-term pullbacks at this point in time could continue to be thought of as buying opportunities, but quite frankly I am a bit hesitant to jump into this market, unless we get some type of more significant pullback.

USD/JPY Video 25.06.21

All things been equal, I like to see this market reached towards the 50 day EMA before I got involved to try to pick up a value play. Because of this, I probably will not use this currency pair for anything more than a bit of an indicator, at least as far as what to do with the Japanese yen against other currencies. As the Japanese yen strengthening against the US dollar, in theory it suggests that the strength or weakness of the currency itself. With that being said, I am watching this market very closely, because I think there is a lot of noise above that extends all the way to the ¥112 level at the very least.

If we did break down below the 50 day EMA, then it is possible that we could go looking towards the 200 day EMA underneath, which is currently reaching towards the 38.2% Fibonacci retracement level, which is at roughly ¥108 level. Because of this, I believe that it would knock a lot of the “weak hands” out of the market and continue the trade to the upside.

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