USD/JPY Price Forecast – US Dollar Rallies Again Against Yen

The US dollar has rallied a bit during the course of the trading session on Thursday as we continue to see the overall upward channel work its way higher. The market has cleared the ¥109 level, which is an area that has been a bit of a magnet for price recently. That being said, the market looks as if it is paying very close attention to the dips as potential support, especially as the 50 day EMA has shown itself to be relatively reliable over the last couple of weeks. Ultimately, I think that we go looking towards the ¥110 level, which is a large, round, psychologically significant figure and makes for a few good headlines.

USD/JPY Video 28.05.21

When you look at the candlestick, the fact that we have broken above the top of a very bullish one tells you that there is significant follow-through and ultimately there should be plenty of buyers coming into the picture as confidence increases. Ultimately, I think what we will see is an attempt to break towards the highs again as we have seen over multiple attempts. The market is likely to continue to see a lot of volatility, but at the end of the day this is a market that will continue to focus on the risk appetite of traders around the world, so there is a little bit of a “knock on effect” of people running away from the Japanese yen. With this being the case, I think given enough time the pair is possibly going to go looking towards the ¥111 level, but it is not going to be easy to get there.

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