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

The US dollar has pulled back just a bit during the course of the trading session on Friday, as the jobs number came out a little less than anticipated although it does appear that the market is willing to look past it. The USD/JPY pair certainly looks as if it is trying to form some type of flag and continue to go higher, so be interesting to see whether or not we can continue to go higher. The ¥115 level underneath continues to be a major support level, as it had been a major resistance level.

USD/JPY Video 10.01.22

Things been equal, this is a dip that should offer a buying opportunity given enough time. I do not have any interest in shorting this pair, because quite frankly the Japanese yen is on its back foot. The 50 day EMA is currently reaching towards the ¥114 level and rising, and I do think that eventually comes into the picture to offer a certain amount of support. With that, dips are to be bought, and this pair is not to be sold.

To the upside, I believe that we go looking towards the ¥117.50 level given enough time, although it will probably take a while to get there. This is a market that has been quite bullish and therefore we probably have to work off some of that extra froth in the market. In general, this is a market that I think will continue to see plenty of buyers, but we may just be taking a bit of a breather after such a powerful and impressive move.

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