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