USD/JPY Price Forecast – US Dollar Breaks OutThe US dollar broke out to the upside during the trading session on Wednesday, slicing through the significant barrier that we had been in. By exploding the way it has, it’s a very strong sign that the US dollar strength should continue.
The US dollar has rallied significantly during the trading session on Wednesday, breaking above the resistance barrier that I feel like I’ve been talking about for ages. Now that the market has broken above there it looks as if it is ready to fill that gap at ¥111. A pullback does make quite a bit of sense though, so I will be looking for that as a potential opportunity to go long. I believe at this point the ¥111 level should be supportive enough to turn this market around, giving traders an opportunity to pick up value in the greenback.
USD/JPY Video 20.02.20
Longer-term, I believe the market is going to go looking towards the ¥112.33 level, but it might be a longer-term move as this pair doesn’t like to break higher quite easily until some type of catalyst happens. At this point, the inflationary numbers out of the United States are better than most other places, so it does make sense that we would rise.
All things being equal though I think that pullbacks will happen occasionally, so this is more of a short-term “buy on the dips” upward trending market more than anything else. As far as shorting is concerned, I have no interest in doing so anytime soon as this market has broken through a major barrier. Longer-term, we could be going as high as ¥115, but that would take a long time to get there from what I see. Continue to buy on the dips and leave it at that as the trend is set.