US Dollar Continues to Consolidate

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied initially during the trading session on Thursday before we showed a certain amount of exhaustion. At this point, the market looks as if it is going to hang around and build up enough momentum to make the next move. At this point, it is very likely that the ¥125 level underneath is the floor right now, and therefore I think any move towards that area will more than likely attract a lot of value hunters. After that, the ¥122.50 level comes into the picture, especially now that the 50 Day EMA is starting to race to that same region.

The market more likely than not it is going to pay close attention to the ¥130 level above, and it is worth noting that the Japanese yen has been oversold for some time, so I do think a pullback not only is likely, but it is probably the healthiest thing that we can see in this market. On the other side of the equation, we have the US dollar which is an area where people run to when there are a lot of concerns. Furthermore, we have a massive interest rate differential between the United States and Japan, that continues to push this market to the upside.

I do not see any reason to short this market, but I do recognize that a pullback could be coming. That should offer an opportunity to pick up a little bit of value going forward, in a market that has clearly broken out above a major resistance barrier as of the last couple of weeks.

USD/JPY Price Forecast Video 22.04.22

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