USD/JPY Price Forecast – US Dollar Sits at ¥110

The US dollar initially pulled back just a bit during the course of the trading session on Tuesday but then turned around to go back towards the ¥110 level yet again. This is an area that we seemingly find every day, so it is not overly surprising to report to you that we are sitting there again. To the upside, we still see the ¥110.75 level as a major resistance barrier and would be difficult to overcome. That is an area that has been extraordinarily difficult to get above, and therefore I think that if we did somehow break out above there then the market could go much higher, perhaps reaching towards the ¥112 level.

USD/JPY Video 08.09.21

To the downside, the ¥109 level continues to be important, especially now that the 200 day EMA has offered support there. With this, the market looks very likely to see a lot of value hunters in that area. If we were to break down below the 200 day EMA, then the market could break down rather significantly, perhaps kicking off more of a trend. With this being the case, the market is likely to continue falling rather rapidly if that happens. Nonetheless, the market is very noisy, and I think you need to keep in mind that the pair is highly sensitive to risk appetite, so we could go back and forth based upon that as well. Either way, you are going to be a short-term trader, or you are going to be sitting on the sidelines in order to wait for some type of certainty coming back into this market, something that has been lacking for a while.

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