USD/JPY Price Forecast – US Dollar Threatening ¥115 Level

The US dollar has gone back and forth during the course of the trading session on Tuesday, as we have reached towards the ¥115 level, which is a large, round, psychologically significant figure, and an area where we have seen a lot of resistance previously, so therefore I think it makes a lot of sense that we have stalled here. Whether or not we can break out is a completely different question, and I would not be surprised at all to see a pullback from this point just simply because nobody wants to stick their neck out this time a year.

USD/JPY Video 29.12.21

However, get a significant pullback that I think you probably have value hunters out there willing to get involved. Keep in mind that the jobs number coming out late next week will be the biggest driver of where the markets go next, and this pair does tend to be very sensitive to that announcement anyway. With this being the case, what am hoping to see is some type of significant pullback towards the 50 day EMA before launching to the upside.

On the other hand, if we break above the ¥115.50 level, then we should be in more of a “buy-and-hold” type of attitude going forward. The absolute “floor in the market” from what I see right now is ¥112.50, so unless we break down below there am only looking to buy value if and when I get an opportunity to find it. Either way, I have no interest whatsoever in shorting this market and I do think that once we get into next year we will start a huge move higher.

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