USD/JPY Price Forecast – US Dollar Continues to Churn Against Yen

The Euro pulled back a bit during the trading session initially on Wednesday but then turned around to jump right back into the previous consolidation area. Ultimately, this is a market that I think continues to see noise near the ¥109 level, as it is a large, round, psychologically significant figure, as well as an area that has previously been important.

USD/JPY Video 25.03.21

All things being equal, this is a market that is very noisy, and I think we are simply trying to figure out what to do next. In general, this is a market that I believe is going to be either sideways to try and work off some of the froth in the market, or it will pull back in order to offer value. I would be very interested in buying a pullback as it gives value in what looks to be a longer-term trend change. After all, yields in America are far outpacing Japan, so that does make quite a bit of sense that this pair continues to go higher over the longer term.

Nonetheless, this is a market that has gone straight up in the air recently, so now the question is whether or not we go sideways or if we pull back? I have no interest in trying to buy it all the way appear, at least not until we have a couple more weeks of sideways action. That being said, the ¥107 level is crucial because not only is it a large round figure, but it is also roughly where the 50 day EMA is reaching towards at this point. I have no interest in shorting.

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