USD/JPY Price Forecast – US Dollar Trying to Reassert Uptrend
The US dollar has rallied during the course of the trading session on Friday as the jobs number came out lower than anticipated. However, the unemployment rate has dropped and therefore it looks as if the market is likely to continue to look at this as the “Goldilocks scenario” for risk appetite. With this being the case, it makes sense that the Japanese yen loses a bit of selling, because quite frankly people are willing to put more money to work.
USD/JPY Video 06.12.21
Underneath, I see the ¥112.50 level as a major support level, and the fact that it held is of course a good sign for the market in general. Because of this, I think that we probably try to revisit the ¥115 level, but that is a major barrier that will be difficult to overcome as it has been important for so long. In fact, I think we probably stay in this range between now and the end of the year, but if we were to break down below the ¥112.50 level, then we will more than likely go looking towards the 200 day EMA, possibly even the ¥110 level.
The ¥110 level is an area where we had seen a lot of noise previously, so it does make a certain amount of sense that we would see a support at that level. All things been equal, this is a market that I think is probably a “buy on the dips” scenario until we break down below that level.
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