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

The US dollar has rallied a bit during the trading session on Thursday to show signs of life again as it looks like we are going to challenge the ¥115 level. The ¥115 level is crucial, and it could have a major influence on almost everything out there. It certainly will have a major influence on the other JPY related pairs, as it is a measure of the strength or weakness of the Japanese yen in general. A daily close above that level will send shockwaves through the markets.

USD/JPY Video 19.11.21

The ¥112.50 level will continue to offer a little bit of a short-term floor the market, as we see the 50 day EMA crossing that level, and of course the most recent pullback was turned around at that area. It certainly looks as if we are trying to build the momentum to the upside, perhaps reaching above the ¥115 level in the next day or two. If and when that happens, I believe this is a market that will suddenly become “buy-and-hold”, meaning that the market will almost certainly be one that becomes more of an investment than anything else.

On the other hand, if we were to break down below the ¥112.50 level, the market goes looking towards the ¥110 level, where the 200 day EMA currently sits. That is the “floor in the market” currently, so if we do break down below there, it is likely that the overall trend will change. Until then, I think this is a market that will continue to find buyers on dips.

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