USD/JPY Price Forecast – US Dollar Continues to Build Bullish Flag

The US dollar has rallied a bit against the Japanese yen during the trading session on Friday, as we look likely to form some type of bullish flag. That being said, you should pay close attention to the ¥115 level above which of course is a significant resistance barrier, and if we can break above there then it is likely we could go much higher. All things being equal, this is a market that should have plenty of support, even if we do break down to lower levels.

USD/JPY Video 01.11.21

The ¥101.50 level underneath could be important, especially as the 50 day EMA is racing towards it. If we break down below there, then it is very possible we could go looking towards the ¥110 level, where the 200 day EMA is reaching towards and of course we had seen a lot of noise in the past. With that being said, I do think that it is probably only a matter of time before the buyers return on any dip based upon “cheap dollars” against the yen. If we could break above the ¥115 level, then it is likely that we could go much higher, in more of a “buy-and-hold” type of scenario. Quite frankly, that is what I expect but it is going to take a significant amount of effort to make this market break out and do that particular move. As far as selling is concerned, I have no interest in doing so as this is a market that is clearly extraordinarily bullish.

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