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USD/JPY Price Forecast – Continues to Grind Towards Major Landmark

By:
Christopher Lewis
Published: Mar 29, 2021, 13:35 GMT+00:00

The US dollar has gone back and forth during the course of the trading session on Monday to kick off the week against the Japanese yen.

USD/JPY

The US dollar has gone back and forth during the course of the trading session on Monday to show signs of confusion. Nonetheless, we are in a very bullish move overall, and have just broken to the upside from a bullish flag a couple of trading sessions ago. The ¥109 level underneath has offered support and was the scene of a bullish flag. Looking at that bullish flag, if we do break out higher it due to that flag there would be a measured move to the ¥113 level. Whether or not we get there is a completely different story about.

USD/JPY Video 30.03.21

The ¥110 level above of course is going to offer quite a bit of resistance, but at this point is difficult to imagine trying to short this market so I think what we are looking at is a market that you should be buying on the dips, and I think that little bit of a flag that bounces around the ¥109 level is an area that you need to look at as a little bit of a “floor.”

All things being equal, this is a market that I think continues to go higher based upon the idea of yield differential between the two countries favoring the US so much. With that being the case, I think we continue to see upward pressure and I look at dips from this point on as an opportunity to pick up value in a market that I think is going much higher over the longer term.

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

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

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