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USD/JPY Price Forecast – US Dollar Testing ¥110

By:
Christopher Lewis
Published: Jul 9, 2021, 13:17 UTC

The US dollar has bounced a bit during the course of the trading session on Friday to reach towards the ¥110 level. Ultimately, this is a market that has recently broken through an uptrend line.

USD/JPY Price Forecast – US Dollar Testing ¥110

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The US dollar has rallied a bit during the course of the trading session on Friday to break above the ¥110 level, but it does look as if we are starting to pull back a bit. Ultimately, the Japanese yen is considered to be a major “safety currency”, and therefore I think a lot of things come into play when you are looking at this market due to the fact that the pair actually features a couple of safety currencies, although it does go up and down based upon risk appetite in general.

USD/JPY Video 12.07.21

That being said, if we continue to see a lot of trouble in the markets overall, that could send this market lower, and if we break down below the candlestick from the Thursday session that would continue to see a lot of negative pressure and perhaps send this market looking towards the 200 day EMA. On the other hand, if we were to take out that candlestick from the Thursday session, then it is very likely we could go looking towards the ¥111.50 level, which of course was where we stopped previously.

The biggest problem with that area is the fact that it has offered significant resistance multiple times on the longer-term charts, and therefore it is certainly worth paying close attention to. Quite frankly, if you want to be a buyer of this pair you should be hoping for a significant drop from here, so that you can find a little bit of value. Regardless, I think you are probably going to see this market behave in a very choppy manner.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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