USD/JPY Price Forecast – US Dollar Pulls Back Against Yen
The US dollar has pulled back a bit against the Japanese yen during the course of the trading session on Wednesday to reach towards the ¥110 level. That being said, the market is likely to see a bit of buying pressure in that general vicinity, as the 50 day EMA is coming into the picture. Ultimately, it is very likely that we will see some type of an attempt to save that area, but if we were to break down below the ¥109.50 level, then it is likely that we will continue to fall towards the 200 day EMA.
USD/JPY Video 15.07.21
Looking at the overall attitude of the market, we have been in a nice ascending channel for a while now, so it is very likely that we will see an attempt to make that continue. That being said, you could make an argument that we should go higher over the longer term, but the 50 day EMA needs to be paid close attention to in order to get a grasp on what may or may not come of that. Keep in mind that this pair is highly sensitive to risk appetite, so that of course should be paid close attention to as well. As a general, if there is a lot of risk appetite out there, then people shy away from the Japanese yen.
I think at the very least this is going to be very noisy pair in the short term, so I typically will use it as an idea what to do with other yen related pairs in this scenario. However, if you are going to play this market.
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