USD/JPY Price Forecast – US Dollar Continues to Levitate Against Yen

The US dollar has gone back and forth against the Japanese yen during trading on Wednesday as we continue to see this market hang around the ¥109.50 level. This is an area where we could see a bit more selling pressure, and the fact that we have the jobs number coming out on Friday will probably continue to cause quite a bit of noise in this market. With that being the case, I think it is only a matter of time before we have to make a bigger move, and the most obvious target above would probably be near the ¥110 level. The ¥110 level has been resistive previously, but we have even broken above there to go towards the ¥111 level, which is my longer-term target if we continue to see upward pressure.

USD/JPY Video 06.05.21

That being said, I do not know that we get a huge move between now and Friday when we get the jobs number. Quite frankly, I think it is going to be difficult to make a big move between now and then, and with that being said I think what we are looking at is a lot of back and forth choppy behavior between now and then. With that in mind, I am somewhat neutral on this pair for the next couple of days, but I recognize that the 50 day EMA underneath could be a target if we do get a selloff, as it should offer support. On the other hand, if we break above the highs of the Monday session, then we will probably go looking towards ¥110, but that is not a very big move.

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