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USD/JPY Price Forecast – US Dollar Reaching Towards Major Resistance Barrier

By:
Christopher Lewis
Published: Nov 16, 2021, 15:29 UTC

The US dollar has rallied again during the trading session on Tuesday, and now it looks as if it is going to try to threaten the crucial ¥115 level.

USD/JPY Price Forecast – US Dollar Reaching Towards Major Resistance Barrier

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The US dollar has shown itself to be very strong against the Japanese yen after a better than anticipated retail sales number, with the pair reaching towards the ¥114.50 level. At this point in time, the market is very likely to go looking at the ¥115 level, which is an area that has been important for several months, and therefore I think this is a major resistance barrier that needs to pay paid close attention to. Quite frankly, if we were to break above this market level, it is very likely that we could go much higher. Ultimately, if we can break above this level on at least a daily close, if not a weekly close, then I think it is a significant sign that we are going to go much higher. At that point, it is very likely that the market would continue to go much higher and more of a “buy-and-hold” type of attitude.

USD/JPY Video 17.11.21

Furthermore, you need to pay close attention to what this would do to the Japanese yen, meaning that a lot of currencies will take off against the Japanese yen itself, so although this pair will more than likely continue to go higher, you may get more alpha in other currency pairs involving the JPY. Ultimately, the ¥112.50 level underneath should be a bit of a floor the market, and it is worth noting that it looks like we are trying to break out of a bullish flag, but I think we have a lot of work ahead of us in the next few days, but this is one of the more important charts to pay attention to at the moment.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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