USD/JPY Price Forecast – US Dollar Stabilizing Against Yen

The US dollar has bounced a bit during the trading session on Monday in order to show signs of stabilization above the ¥112.50 level. This is an area that has been important more than once, so having said that it makes quite a bit of sense that we would see a bit of hesitation here. If we can break above the ¥113.50 level, then it is likely that we would continue to go looking towards the ¥115 level. The ¥115 level is an area that has been important multiple times on longer-term charts, so it will be interesting to see whether or not we can break above there. If we do, then the market is likely to go looking towards more or less a “buy-and-hold” type of situation.

USD/JPY Video 07.12.21

To the downside if we were to break down below the ¥112.50 level, it could open up significant selling pressure to reach down towards the 200 day EMA. Currently, the 200 day EMA sits at roughly ¥110.50 below, but is starting to rise. The ¥110 level underneath is a massive area that will determine the overall trend. If the market does break down below there, then it is likely that we could go much lower, perhaps selling off quite drastically in a major “risk off move” in general. All things being equal, this is a market that looks like it does want to at least attempt to return to the ¥115 level, but it is very likely to continue to struggle to break above there. It is more likely than not we are range bound in the short term.

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