The US Dollar Continues to Consolidate Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth during the session on Monday to show signs of hesitation and concern, but quite frankly this is a market that has broken a major resistance barrier recently. In fact, if we can stay at these elevated levels, it is likely that we will see the pair end up being more of a “buy-and-hold” type of situation. That being said, the market is likely to continue to see a bit of hesitation in the short term, simply because we are so overbought.

The ¥127.50 level being violated to the downside opens up the possibility of a move to the ¥125 level, an area that I do think will attract a lot of attention. The ¥125 level will continue to be an area that attracts a lot of attention, and therefore a lot of order flow. If we were to break down through that level, then we have to ask serious questions about the overall uptrend, but at this point, the US dollar is probably the most important currency that you can own at the moment.

Looking at this chart, it is also very likely that we see choppy behavior more than anything else. If we were to break above the ¥130 level, then we could go much higher as that would be a major breach of longer-term resistance. Ultimately, this is a market that has gotten far too ahead of itself, so I think at this point is likely that we see the pair try to work off some of the excess froth one way or another. Moves like this typically have follow-through though, and that something to keep in the back of your mind.

USD/JPY Price Forecast Video 25.04.22

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