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USD/JPY Price Forecast – US Dollar Continues to Digest Gains

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The US dollar has gone back and forth during the course of the trading session on Thursday as the market is trying to digest the massive amount of gains that we have seen over the last couple of weeks. That being said, it is very bullish that we are sitting underneath the massive long-term resistance and just hanging about. This shows that the market is certainly not concerned about it, and that if we can get a fundamental reason to continue taking off, then it is possible that we could go much higher. That being said, we need to clear the ¥115 level to make that move.

USD/JPY Video 22.10.21

On the other hand, if we pull back from here, it is likely that we will go looking towards the ¥112.50 level. That of course is an area that could offer interest, but even if we break down through their it is really not until we break down below the ¥110 level that I would be concerned about the uptrend. With that in mind, the market is likely to continue seeing noisy behavior, but I think this is more about the Japanese yen than anything else.

After all, the US dollar has fallen against almost everything recently, with the exception of the Japanese yen. As long as that is going to be the case, then it is likely that we will see this market prefer the upside than the down, and therefore it is more or less going to be a “buy on the dips” type of situation. Expect volatility but look for value as it appears.

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

This article was originally posted on FX Empire


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