USD/JPY Price Forecast – US Dollar Recovers to Continue Trend
The US dollar has rallied a bit against the Japanese yen during the trading session on Wednesday, as we have turned around to show signs of strength. The candlestick is swallowing the candlestick from the previous session, so that is a very bullish sign. The market has been in an uptrend for quite some time, and therefore I think is a significant barrier, especially when you look at the massive amount of selling pressure that we have seen above. The ¥115 level is an area that will continue to be watched very closely, because if we do break out above there, it is very likely that it becomes more of a “buy-and-hold” type of situation.
USD/JPY Video 11.11.21
Short-term pullbacks continue to be buying opportunities, as the market clearly has plenty of buyers, as the Japanese yen is one of the weakest performers in the FX markets right now. If we can finally take out the ¥115 level, I think it could kick off a multi-month, if not a multi-year move. To the downside, if we break down below the ¥112.50 level, then the market goes looking towards the ¥110 level underneath. That is where the 200 day EMA currently sits, as it is backing up quite a bit of previous price action.
The 200 day EMA of course will be crucial, because if we break down below there, then I think that the market probably falls apart. In that scenario, it would be a major “risk off” type of move around the market. All things being equal, this is a market that looks as if it is trying to continue what we have seen for quite some time.
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