USD/JPY Price Forecast – US Dollar Tests ¥115 Level

The US dollar has rallied a bit during the session early on Wednesday but gave back gains near the ¥115 level, as we continue to see that area as being crucial. At this point in time if we can break above the ¥115 level on a daily close, then I believe it is very likely that we will see this market continue to go higher over the longer term. That being said, this is a market that I think continues to see a lot of noisy behavior over the next several days, but I do think eventually we try to break out and go much higher.

USD/JPY Video 18.11.21

Keep in mind that the ¥115 level being broken to the upside opens up the possibility of a much bigger move, perhaps opening up the possibility of a longer-term “buy-and-hold” type of market that we can take advantage of from a structural and investment standpoint. Currently, I think pullbacks will be supported all the way down to at least the ¥112.50 level, perhaps even down to the ¥110 level.

All things being equal, the 50 day EMA breaking above the ¥112.50 level does open up the possibility of a continuation to the upside as well, so that being said it is only a matter of time before buyers come in to pick this thing up. I have no interest in shorting, because quite frankly it is obvious that the market wants to go higher, and of course the US dollar has been one of the biggest gainers as of late. All things been equal, I remain a “buy on the dips” type of trader.

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