USD/JPY Price Forecast – US Dollar Continues To Grind Against Japanese Yen

The US dollar has rallied a bit against the Japanese yen early on Monday, as we continue to see strength in general. At this point, the market will more than likely find buyers on dips as we have clearly broken through a major level at one point last week.
Christopher Lewis
USD/JPY Price Forecast - US Dollar Continues To Grind Against Japanese Yen

The US dollar has rallied slightly against the Japanese yen on Monday, as we continue to see a lot of US dollar strength in general. That being said, the market has exploded to the upside and we are a bit of her stretched at the moment. Nonetheless, I do think that pullbacks will continue to offer plenty of value that you can take advantage of, as this market has been so bullish in general. Ultimately, the market will continue to see the ¥110 level as an area of importance as it took so long to break above. Furthermore, I think the market extends support down to at least the ¥109.60 level, and therefore buyers can get involved on that dip.

USD/JPY Video 21.01.20

Keep in mind that this pair is heavily influenced by risk appetite in general, so because of this you will need to pay attention to how stock markets are going overall, and as they arise typically this pair will too. Furthermore, if this market breaks out and above the shooting star from the previous session, then the market is likely to go looking towards the ¥111 level which is a gap. If we can break above the gap, then the market is likely to go towards the 100% Fibonacci retracement level above at the ¥112.35 level. Looking at this chart, it needs see the pullback or “kill time” by going sideways before exploding higher. I have no interest in shorting this pair regardless.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.