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

The US dollar initially dipped a bit against the Japanese yen, but then turned around during the course of the trading session on Tuesday to go reaching above the ¥113.50 level. The area above there is a significant barrier on monthly timeframe trading, and the market will almost certainly be paying close attention to that region. That being said, if we can break above the ¥114 level, then it is likely that we go much higher.

USD/JPY Video 13.10.21

To the downside, the ¥112.50 level is an area that has been important more than once, so it will be interesting to see if that holds as support. If we break down below there, then the market is likely to turn around for a much bigger move. After all, the area just above has been significant resistance multiple times on the monthly chart, so it is very interesting to see how the market will behave in this region. We are overbought again, so a pullback would not be a huge surprise at all. Because of this, the market probably needs to take a bit of a breather anyway, so I anticipate that we will at the very least pullback.

Whether or not you should short this market is completely up to you, but I prefer to short below the 112.50 level, because I need to see some type of confirmation of an attempted turnaround. Keep in mind that this pair had been very quiet until recently, so it is worth noting how much of a difference just a few days has made. Because of this, because I think we are about to see quite a bit of momentum one direction or the other.

For a look at all of today’s economic events, check out our economic calendar.