USD/JPY Price Forecast – US Dollar Pulls Back From Extreme Highs
The US dollar initially tried to rally a bit during the course of the trading session on Friday but then pulled back from the ¥111.50 level, as the market may have gotten a bit over stretched. At this point time, it looks as if the market is probably going to go looking towards the ¥111 level. After that, then the market could very well go towards the ¥110 level. The market is recently breaking out of an ascending channel, and that should continue to be something worth paying attention to.
USD/JPY Video 05.07.21
Underneath, if the market was to drop it is very likely that the 50 day EMA could be the target, but quite frankly if we fall here, then I typically will use this as an indication as to what the market might do with the Japanese yen in other pairs as the volatility is much stronger in something like the AUD/JPY market, or even the GBP/JPY pair.
Just above, there is a massive amount of resistance near the ¥112 level, not only from the most recent attempt, but the longer-term charts as well, as the market has consistently shown a reaction to this area, and I do not see that changing anytime soon. With this, I believe that we probably have a pullback coming that we need to take advantage of. You should also keep in mind that risk appetite has a major influence on what happens here as well, so that is something to keep in the back of your mind going forward. I would anticipate that we should see a lot of noisy trading over the next couple of weeks.
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