USD/JPY Price Forecast – US Dollar Stabilizing Against Yen

The US dollar has rallied a bit during the trading session on Thursday after forming a stabilizing candlestick during the trading session on Wednesday. Ultimately, this is a market that has recently broken out above a major downtrend line, and now seems to be trying to hold at the 50 day EMA. To the upside, we have the 200 day EMA offering resistance, so if we can turn around a break above there, then the market is likely to go much higher. After all, this is a market that I think continues to see a lot of volatility, but it certainly looks as if we are trying to turn things around from a longer-term standpoint.

USD/JPY Video 12.02.21

I believe that paying attention to where we break out of the range from the Wednesday candlestick probably makes the most sense. For example, if we turn around a break above the top of the candlestick from Wednesday, then I think we probably go looking towards the 200 day EMA again. On the other hand, we break down below that candlestick, then it is very likely we are trying to get down to the ¥104 level. I think at this point time this is a market that continues to show a lot of choppiness, and therefore I think you are going to need to be very cautious about putting money to work in large quantities. However, if we are going to turn things around, this might end up being a longer-term “buy-and-hold” type of situation. One thing is for sure, we will probably have a big opportunity once the market settles on a particular direction.

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