USD/JPY Price Forecast – US Dollar Rises After Hot CPI
The US CPI numbers came out hotter than anticipated during the course of the trading session so should not be a huge surprise that the dollar gained a bit of strength against the Japanese yen. It actually sold off at one point as well, but we have turned around a break above the ¥109 level yet again. There is a lot of noise up here, so do not be surprised at all to see if we continue to chop around in this general vicinity. If we can clear the ¥109.50 level, then I think the market has the ability to go to the ¥110 level.
USD/JPY Video 13.05.21
To the downside, I believe that the 50 day EMA sitting at the ¥108.40 level should continue to offer support, as it is also shown to have done so a couple of times recently. Furthermore, it is starting to curl higher so that suggests that we will eventually squeeze to the upside. Beyond that, when you look at previous trading, we had bounced from the 38.2% Fibonacci retracement level as well.
All things been equal, I think will continue to go higher as the Japanese yen is a bit of a punching bag for a lot of currencies, even the US dollar which of course has been rather weak for some time. All things been equal, this is a market that I think does go looking towards the ¥111 level again, but it is not going to be easy to get there based upon previous noise. I continue to buy dips, but I also prefer to buy other currencies against the Japanese yen overall.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
