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

The US dollar has rallied significantly during the course of the trading session on Tuesday, to break above the ¥111 level. We are getting a bit over stretched at this point, so I would not be overly surprised to see some type of pullback. Nonetheless, this market cannot be chased at this point, but it does make a really good indicator for Japanese yen strength or weakness. At this point, it is more or less ready to make a bigger move, but I would like to see a little bit of a pullback before chasing this type of move. Quite frankly, it has a major implication when it comes to the yen, which has made a bit of triangulation possible.

USD/JPY Video 29.09.21

Follow me here: because this market has gone straight up in the air, it weighs upon the Japanese yen overall, so at this point in time other currency pairs such as AUD/JPY, GBP/JPY, etc. are all falling, but much slower than AUD/USD and GBP USD. In other words, by paying attention to this market, it has gotten me going long but dollar and not the yen, despite the fact that both will probably do fairly well against other currencies. It is a matter of relative strength or weakness, and as a result it keeps me on the right side of markets overall. While you can make money shorting any of those currencies against the Japanese yen, you make much more by shorting them against the greenback. As far as trading this pair is concerned, I would not do it here is simply due to the fact that the market has gotten a bit overextended.

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