USD/JPY Price Forecast – US Dollar Continues Parabolic Move

The US dollar has exploded to the upside during the trading session on Tuesday, leaving the ¥110 level behind. This is a market that continues to see a lot of bullish pressure, and quite frankly that pause that we had was much shorter than I thought it would be. Based upon the bullish flag that had broken out, it is very possible that we could go looking towards the ¥113 level. That being said, if you are not already long of this market you need a pullback, which is something that I feel like I have been saying forever now.

USD/JPY Video 31.03.21

At this point, as long as we can stay above the ¥108.50 level, this is a market that will continue to be buying opportunities. At this point in time, it will continue to move right along with yield differentials, which of course favor the United States as the treasury markets have seen a spike much higher. At this point in time, there is no way to short this market, at least not until we break down below the ¥108 level. If that were to happen, then I would have to reassess the entire situation, and it would also need to see yields in America fall rather significantly for me to think everything lines up. Quite frankly, breaking above the ¥110 level is a significant thing to pay attention to, and therefore I think we will probably see more of a trend change going forward. At this point in time, this is getting a bit exhausted, but obviously you cannot be a seller under any circumstances as things stand, and quite frankly I do not see that changing anytime soon.

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