USD/JPY Price Forecast – US Dollar Recovers Against Yen
The US dollar has rallied a bit during the course of the trading session on Tuesday to show a resumption of the overall bullish behavior. At this point, I think that the market is likely to continue to try to reach towards the ¥115 level, which of course is a major round figure and a major area of resistance that has come into the picture again. By testing this area, it could open up the possibility of a “buy-and-hold” type of situation. If we were to go above the ¥115 level, then it is likely that the market would go much higher on a longer timeframe.
USD/JPY Video 27.10.21
To the downside, I see the ¥113 offering support, followed by the 50 day EMA. After that, I would anticipate that the ¥110 level is massive support. The ¥110 level of course is an area that has been important more than once, as we have seen a massive amount of consolidation in that area. At that point, I would anticipate a lot of value hunters to come into the market and take on the upside. The 200 day EMA also sits right around the same area, so that of course could come into the picture as well.
All things been equal, I do not see a scenario in which I would be a seller, at least not anytime soon. With this in mind, I am looking for an opportunity to take advantage of what has obviously been a very bullish market. This probably has more to do with the Japanese yen than the US dollar, so if we do break out it is as equally possible that I could find myself buying something like the GBP/JPY pair instead of this one.
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