USD/JPY Price Forecast – US Dollar Continues to Power HigherThe US dollar has been quite impressive against the Japanese yen during the trading session on Wednesday, as we continue to see buyers try to crack the ¥112 level. The tenacity of the greenback has been quite impressive.
The US dollar rallied a bit during the trading session again on Wednesday, as the ¥112 level looms large just above. If the market can finally break through there, it will obviously go much higher, due to the fact that every time this market has dropped, it appears that more people are willing to step in and try to pick this up. The US dollar is in huge demand right now, as we have seen against several other currencies. Because of this, I believe that the market is very likely to continue to see people buying on the dips until something drastically changes. If we can break above the ¥112 level, then it’s likely that we could have a significant move after that.
USD/JPY Video 26.03.20
On that move, I would anticipate that the market goes looking towards the ¥114 level, possibly even the ¥115 level. The fact that the buyers simply won’t let it go tells me just how tenuous the situation is and how much demand there is for the greenback in general. I like the idea of owning the greenback in this time of confusion and concern, even though the Japanese yen is considered to be one of the premier “safety currencies” out there. There is huge demand for the greenback due to massive amounts of debt around the world, and that is going to be a story that you will be hearing most of the year. At this point, if we break down below the ¥109 level, that could lead to massive selling, but obviously there’s a lot of people willing to fight that move.