USD/JPY Price Forecast – US Dollar Wilts Against Japanese Yen

The US dollar has initially tried to rally during the trading session on Wednesday but gave back the gains as we are starting to see a bit of exhaustion. This makes sense, because quite frankly the market had gotten far ahead of itself. At this point, the ¥110 level continues to cause a lot of issues so pay attention to the volatility in this area. Having said that, I do believe that there is a thick range of support that extends all the way down to the 50 day EMA, so I’m looking for an opportunity to buy some type of bounce here. The market of course is a risk sensitive, so keep that in mind as well.

USD/JPY Video 23.01.20

To the upside I anticipate that this market will probably go looking towards the ¥111 level, which is where we have seen a significant gap. If we can break above there, then the market is likely to go looking towards the ¥112.33 level next. Because of this, I am looking for buying opportunities and have absolutely no interest whatsoever in trying to short this market. I believe at this point it’s likely that we will continue to see volatility but with more of an upward slant from a longer-term standpoint.

Pay attention to the stock markets, because they of course do tend to move right along with the risk appetite of traders in general, so it makes sense that we would see a lot of back and forth but with more of an upward slant there as well. The two markets do intertwine quite nicely, so pay attention to the whole thing and it should give you a clue as to when we should go higher.

Please let us know what you think in the comments below