US Dollar Has a Quiet Session

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth during the course of the trading session on Wednesday as we continue to see plenty of upward pressure in general, but the market also looks as if it is finally running out of momentum. This is a market that is overstretched on just about any metric you can measure it against, so it would not be surprised at all to see a significant pullback. Ultimately, this is a market that is bullish, to say the least, but it is also a market that has been so overbought that I fear that the pullback could be absolutely massive.

That pullback should end up being a buying opportunity unless of course something fundamentally changes from the Federal Reserve. The interest rate differential continues to be one of the biggest drivers of where we go next, so it is worth paying close attention to any statement. The markets could fall five handles rather rapidly based on what we have seen recently.

The pair is relatively risk-sensitive, but it is also worth noting that we have recently tested a major resistance barrier on the monthly charts, meaning that we could be looking at a top relatively soon. Ultimately, the market needs to find some type of balance, and that balance almost certainly will be at lower levels. With that in mind, I would be cautious but I also recognize that buying this pair all the way up at this level is foolish, to say the least. Yes, you could have said that the last couple of weeks but the longer this goes on, the worse this becomes.

USD/JPY Price Forecast Video 30.03.22

For a look at all of today’s economic events, check out our economic calendar.