The US dollar has rallied quite a bit during the trading session on Monday, reaching towards the ¥110 level. That’s an area that is significant resistance that the market has acknowledged for some time. If we were to break above there for a significant amount of time, perhaps a few hours, the market is likely to continue the next leg higher and reach towards the ¥111 level, where there is a bit of a gap. If we can break above there, then the market is likely to go to the ¥112.50 level.
USD/JPY Video 14.01.20
Pullbacks at this point will continue to collect a bit of interest, and perhaps the idea of people building up positions. The market has broken above the top of a shooting star from the previous session, and that suggests to me that we are going to continue to see buyers jump in and try to break this pair out. Remember that it is highly sensitive to risk appetite, and the markets rally in and showing signs of strength again could drive this pair much higher. That being said, it doesn’t mean that we will do it immediately and we may need to pullback several different times in order to finally break higher for a sustainable move. If we do pull back from here, the market will probably go looking towards the ¥109 level for support, and furthermore at the ¥108 level. I have no interest in shorting, but I recognize that you may need to show a bit of patience in order to start buying.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Prediction – Prices Slip and Continue to Form Bull Flag
- Crude Oil is Slowly Falling
- E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 9053.25, Weakens Under 8966.25
- GBP/JPY Price Forecast – British Pound Sideways Against Yen
- S&P 500 Price Forecast – Stock Market Continues To Grind Higher
- Price of Gold Fundamental Daily Forecast – Prices Likely to Weaken as Investors Seek Value