USD/JPY Price Forecast – US Dollar Continues to Power Towards Top of Range

This has been a pair that is been almost painful to trade, unless of course you link a lot of back-and-forth range bound trading. If that is the case, then you have a couple well defined areas to pay close attention to. The ¥110.75 level is an area that you to pay close attention to, in the sense that it has been such a massive resistance multiple times. To the downside, then you have the ¥109 level, which of course is an area that has been massive support recently. Ultimately, if you have traded back and forth between these two levels over the last couple of months, you have probably made money.

USD/JPY Video 27.08.21

The Jackson Hole symposium of course is going to come into focus over the next couple of days, as we try to figure out what is going to happen next with the Federal Reserve. Ultimately, the Federal Reserve tapering or not tapering is the only question that people are asking. If we see tapering, that will probably send this market into a tizzy, because it will be a fight between the strengthening US dollar and the safety of the Japanese yen position. Going forward, if we were to break above the ¥112 level, then we have more or less a “buy-and-hold” market. On the other hand, if the market were to turn around a break down below the 200 day EMA which sits just below that previously mentioned ¥109 level, then it is likely that we break down somewhat significantly to go looking towards much lower levels such as the ¥107.50 level.

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