US Dollar Continues to Stretch

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied ever so slightly during the trading session on Monday, but it is worth noting that most major banks were closed during the trading session. Because of this, the liquidity issue might be a bit of a factor, but ultimately this is the market is going to see a lot of noisy behavior, but I do suspect that if we do pull back from here it makes sense that the ¥125 level will offer potential support.

If we do break down below the ¥125 level, then it is possible that the market could pull back to the ¥122.50 level. Ultimately, this is a market that certainly looks as if it is going to continue to see a lot of “FOMO”, but once a market gets this overbought it is a bit dangerous to simply jump in with both feet. Ultimately, the market is going to continue to look at this as a potential major breakout, as there had been major resistance there on the monthly charts. If we were to break above there, then it could open up more or less a “buy-and-hold” type of situation.

Looking at this chart, I think it is very difficult to imagine shorting it, but if we were to turn around and break down below the ¥120 level, then it could be a major turnaround. At this point, the market is likely to see more downward pressure, perhaps in a major “risk-off event.” The market continues to be very noisy, but as long as the Bank of Japan continues to fight higher interest rates, it is essentially the same thing as quantitative easing.

USD/JPY Price Forecast Video 19.04.22

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