US dollar rallies significantly against the Japanese yen on Monday

The US dollar has gapped higher at the open on Monday, and then continue to reach towards the 108 level. I think that the market should continue to go higher, as breaking above the 108 level is important. The market could go as high as the 110 level above, as it was structurally important in the past. That’s an area that has been resistance and of course support previously, and it makes sense that the market will try to go to that level.

The US dollar has been strengthening against most currencies around the world, so that should continue to be what we witness. I believe that this market will offer buying opportunities on pullbacks, and I think that the 107.50 level will now offer a bit of a “floor” in the market. Ultimately, this is a market that I think will continue to find plenty of reasons to go higher, as not only do we see the US dollar strengthening, but I believe that the stock markets are about to turn around. If that’s the case, and they go higher that will only put more bullish pressure on this market, and with rising interest rates in the United States, that also helps the currency. If we were to turn around and break below the 107.50 level, the market could fall apart and struggle in general. Longer-term, I think that the buyers will run the show.

USD/JPY Video 24.04.18