USD/JPY Price Forecast – US Dollar Screaming Higher Against Yen
The US dollar has rallied significantly during the course of the trading session on Monday to kick off the week and slice through the ¥112.50 level. This of course is a very bullish sign, as we look likely to continue pressing to the upside. That being said, this seems to be a bit of an over stretched, and when you look around the world it seems like everything is rallying against the Japanese yen. Because of this, I would only read so much into this but at this market obviously still looks a lot like a “buy on the dips” type of market. I would have no interest in shorting this market obviously, because it is so strong at this point.
USD/JPY Video 12.10.21
The size of the candlestick is rather impressive, but that does not necessarily mean that we are going to slice right through the resistance just above. Quite frankly, I think that it is very likely we will continue to see a lot of noisy behavior, and therefore you need to be cautious about your position size. It is worth noting that we have even reached above the ¥113 level as I am recording this, and that of course is a major move.
To the downside, I believe that there is plenty of support near the ¥110 level, and of course the 50 day EMA. Because of this, it is very likely that we continue to see that as a “hard floor in the market.” Breaking that of course would be a big deal, but we are so far removed from that right now it is not even a thought at this point.
For a look at all of today’s economic events, check out our economic calendar.