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USD/JPY Price Forecast – US Dollar Back at Familiar Level

By:
Christopher Lewis
Published: Sep 23, 2021, 13:40 UTC

The US dollar has rallied against the Japanese yen to reach towards the ¥110 level, an area that we have hit multiple times.

USD/JPY Price Forecast – US Dollar Back at Familiar Level

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The US dollar has rallied again during the trading session on Thursday to reach towards the ¥110 level. That being said, we can break above there, the market is likely to go looking towards the ¥110.75 level, an area that is most certainly worth paying close attention to. If that is going to be the case, then it is likely that we will see a turnaround between now and then, but if we were to break above there, then we could really start to see momentum pick up.

USD/JPY Video 24.09.21

As things stand right now, the market is likely to see a lot of choppy behavior going back and forth, as it is an area that has been paid close attention to for several months. That being said, the market is likely to continue to see the area hold, because quite frankly this is a market that has done nothing for so long that range bound traders have been taken advantage of this. The 50 day EMA is flat, and the 200 day is racing towards the support level underneath.

This pair is somewhat sensitive to risk appetite, but that is somewhat limited in the fact that both currencies are considered to be “safety currencies.” If nothing else, this is a great currency pair to pay attention to if you are trying to figure out the strength or weakness of the Japanese yen, and extrapolate that to other pairs such as the GBP/JPY pair, AUD/JPY pair, etc. This would be a process known as “triangulation”, when you measure the strength of a couple of currencies against the US dollar. As things stand right now, the Japanese yen is very stable.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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