USD/JPY Price Forecast – US Dollar Continues to Shoot Straight UpThe US dollar has rallied rather significantly on Thursday to break through the ¥107 level again, in what is becoming a bit of a parabolic move.
The US dollar has rallied again against the Japanese yen as we are starting to see the trend change truly take off. However, you cannot simply jump in and buy this pair where we are, because we do have the Non-Farm Payroll numbers coming out, and that of course can cause a lot of noise in this pair. Ultimately, this is a market that should be bought on pullbacks because we have clearly seen a massive switch in attitude.
USD/JPY Video 5.03.21
If yields in the United States continue to rise, that will be like a rocket fuel for this pair, as the market tends to be very sensitive to the spread differential between the United States and Japan and that should continue to be the case going forward. That being said, the market is likely to see a lot of volatility, but I am looking to take advantage of that volatility because I do believe eventually that we will see a significant drop. That drop will be when we go looking towards the pair to get long again. I do think that the jobs number could be the catalyst to get this market back down to reality, and I would be all over a move towards the ¥106 level. I do believe that the “floor the market” is the ¥105 level, so if we were to break down below there, I think that would change everything. All things been equal though, this is a market that can only be bought.
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