U.S. Markets open in 1 hr 44 mins

USD/JPY Price Forecast – US Dollar Continues To Grind Against Japanese Yen

Christopher Lewis

The US dollar has rallied slightly against the Japanese yen on Monday, as we continue to see a lot of US dollar strength in general. That being said, the market has exploded to the upside and we are a bit of her stretched at the moment. Nonetheless, I do think that pullbacks will continue to offer plenty of value that you can take advantage of, as this market has been so bullish in general. Ultimately, the market will continue to see the ¥110 level as an area of importance as it took so long to break above. Furthermore, I think the market extends support down to at least the ¥109.60 level, and therefore buyers can get involved on that dip.

USD/JPY Video 21.01.20

Keep in mind that this pair is heavily influenced by risk appetite in general, so because of this you will need to pay attention to how stock markets are going overall, and as they arise typically this pair will too. Furthermore, if this market breaks out and above the shooting star from the previous session, then the market is likely to go looking towards the ¥111 level which is a gap. If we can break above the gap, then the market is likely to go towards the 100% Fibonacci retracement level above at the ¥112.35 level. Looking at this chart, it needs see the pullback or “kill time” by going sideways before exploding higher. I have no interest in shorting this pair regardless.

Please let us know what you think in the comments below

This article was originally posted on FX Empire