USD/JPY Price Forecast – US Dollar Continues Parabolic Move

The US dollar has rallied a bit during the trading session on Monday again to break above the ¥105.50 level. By doing so, it looks as if the market is going to continue to go higher, but at this point I think it is extraordinarily dangerous to start buying this move until you get some type of pullback in order to find some value or at least a reasonable pricing. After all, if you are going to “chase the trade” all the way appear, you could find yourself in some type of horrible position that you have to sit on for quite a while.

USD/JPY Video 9.03.21

When you look at the Japanese yen across-the-board, seems as if it has been sold off so this may lead to a better trade against the Japanese yen with some other currency. After all, this is the best way to measure the strength or weakness of the Japanese yen, so at this point in time it is likely that that we continue to see the market rally in more of a “risk on” type of situation, but at this point in time it is obvious that this is a market that you cannot be a seller of, and if you are not already long in this pair, you need to wait for a pullback to get involved. If you absolutely need to short the Japanese yen, you can do it against a multitude of other currencies, as the risk to reward situation is horrible at this point. I would prefer to see this market pullback closer to the ¥107 level, but I will have to take it one day at a time.

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