USD/JPY Price Forecast – US Dollar Continues Parabolic Run Against Japanese Yen

The US dollar has initially pulled back just a bit during the trading session on Wednesday only to turn around and rally yet again. With this being the case, the market looks as if it is trying to break out but you cannot be someone willing to chase at this point. Quite frankly, if you want to buy the US dollar there are multiple other currencies that it would be easier to do against, as the British pound has just broken through major support, while the Australian dollar is ready to go lower as well. At this juncture, I have been using this pair more or less as a sign of strength or weakness in the Japanese yen.

USD/JPY Video 30.09.21

Nonetheless, if we can break above the ¥112 level, you would have to believe that we are going to the ¥112.50 level. On a breakdown below the bottom of the candlestick for the session on Wednesday, the market then probably goes looking towards the ¥110.50 level, followed by the ¥110 level after that. Either way, I think it is going to be very noisy and risky to be a buyer at these high levels. Nonetheless, regardless of what you do, you cannot be a seller of this pair anytime soon. In fact, I believe that we are kicking off a bit of a renaissance for the US dollar again, as there are rising yields in America for the first time in ages of any significance. Buying the dips continues to be the best way that traders are approaching this market.

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