USD/JPY Price Forecast – US Dollar Continues to Grind Sideways

The US dollar has rallied a bit during the course of the day, to break above the ¥109 level. The ¥109 level has offered a bit of resistance, and therefore it looks as if we are trying to decide whether or not we can continue to go higher, or if we are going to have to pull back in order to continue going higher. Quite frankly, I like the idea of buying dips if and when they occur, because we are obviously very bullish as of late, but we also have gotten a bit parabolic. In other words, I am trying to find some sense of value if and when it can show itself. Until then, there probably is not too much to do as the market is overbought to say the least.

USD/JPY Video 19.03.21

I think that given enough time we will more than likely see some type of movement that would be necessary to build up momentum to continue going higher. Having said that, if we were to take off to the upside, then the market is likely to go looking towards the ¥110 level which of course is going to be psychologically significant figure. That is an area that has been important more than once, and the fact that we shot straight up in the air tells me that at the very least we need to kill some time, if not find some type of pullback to find value. Currently, it looks as if we are paying close attention to the yields in the US bond markets, which of course have been going higher as of late.

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