USD/JPY Price Forecast – US Dollar Threatens ¥110

The US dollar has rallied significantly during the trading session on Thursday, as we continue to see a bit of upward pressure and an attempt to reach towards the ¥110 level. As you can see, there was a shooting star at that level several days ago, and therefore I think it is a barrier that we are more than likely going to continue to see a barrier. If we can break above that barrier, then the market is likely to go looking towards the ¥111 level, which is likely to be heavily defended as it was a major resistance barrier as of late.

USD/JPY Video 04.06.21

At this point, it looks as if short-term pullbacks could be a nice buying opportunity given enough time, especially if we were to sell off to reach towards the 50 day EMA. All things being equal, this is a market that I do think continues to go higher but you should keep in mind that the Non-Farm Payroll number does tend to move this market quite drastically, so given enough time it is likely that we would see a lot of volatility. Nonetheless, I do think that given enough time we would see opportunities on dips due to a “knee-jerk reaction” that is very likely to happen.

It is not until we break down below the 50 day EMA on a daily close that I would even consider shorting this market, as the bullish run lately has been so strong. Even then, I would have to reassess the entire situation before putting money to work. At this point though, it is obvious that there is a significant amount of bullish pressure and I have to take that as the default position.

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