US Dollar Continues to Fly Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied significantly during the trading session on Tuesday as the market has broken above the ¥128 level. That being said, the market is breaking out yet again, and now it becomes a “buy on the dips”, which is a natural attitude of a market that continues to attract a lot of momentum traders. Underneath, the ¥125 level should be crucial support, as it is a large, round, psychologically significant figure and an area where we had seen a bit of resistance previously. “Market memory” could come into the picture at that juncture, so it is most certainly worth paying close attention to.

The size of the candlestick is of course telling us that the market is very bullish, and therefore there is no real situation where you would be looking to short this market. Because of this, any dip should be thought of as a potential buying opportunity and offering value in a market that is favoring the upside. If we were to break down below the ¥125 level, then it is likely that the market will start to look to the ¥122.50 level as a potential support level as well, so at this point in time, I do not have any interest in shorting this market regardless.

The market continues to see a lot of volatility, but at this point in time the market is likely to see buyers every time there is a significant dip, if for no other reason than “FOMO.” We had recently broken above a multi-year resistance barrier, and therefore it is likely that we continue to see buyers run the market over.

USD/JPY Price Forecast Video 20.04.22

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