USD/JPY Price Forecast – US Dollar Sits Just Below ¥110 Yet Again
The US dollar has fallen a bit against the Japanese yen during the trading session on Thursday, but as you can see, we continue to levitate right around the ¥110 level. The 50 day EMA is also sitting in the same general vicinity, and of course that will cause quite a bit of attention to be paid to this general vicinity as well. Looking at this chart, it seems as if the market is going to continue to be very volatile and choppy.
USD/JPY Video 30.07.21
Underneath, the ¥109 level should offer significant support, but even if we break down below there, it is possible that the 200 day EMA also comes into the picture as well. Keep in mind that the 200 day EMA is widely followed by longer-term traders, so that of course is something that you have to pay attention to. On the other hand, to the upside if we can clear the ¥110.75 level, it is possible we could challenge the recent highs again, but keep in mind that there is a significant amount of resistance above there that goes back several months, if not years.
I think at the very least you should look at this market as one that is going to be choppy and probably somewhat directionless. I think if you are range bound trader you can certainly play these levels but beyond that you are going to have a hard time trading this market for anything more than the occasional bounce around. Ultimately, you could also use this as an indicator as to where the Japanese yen could be going against multiple other currencies.
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