USD/JPY Price Forecast – US Dollar Continues to Strengthen

The US dollar has rallied again during the day on Friday to reach towards the ¥109 level, an area that has been resistance more than once. That being said, even though this is a very bullish market I am very hesitant to get involved to the upside here, mainly because this chart is starting to look more like Bitcoin than a currency pair. That being said, I do think that we will eventually go looking towards the ¥110 level, an area that obviously will capture a lot of attention.

USD/JPY Video 15.03.21

To the downside, I would be very interested in buying some type of dip, especially near the ¥107 level, as it would essentially be a 50% retracement. The market has recently seen a bit of a bullish indicator from the moving average standpoint, as we have formed a “golden cross”, something that a lot of longer-term traders will pay attention to as the 50 day EMA breaks above the 200 day EMA.

With all that being said, I do think that it is only a matter of time before we have to make some type of pullback in order to build up the necessary momentum to continue the trend change that we have been seeing. I have no interest in shorting this market, it is far too strong, and I think that you are probably looking for serious trouble if you try to do anything on the short side. Yes, you can make a quick return in theory, but the reality is that you cannot fight this type of upward momentum. The only thing you can do is buy this market when it offers value at lower prices.

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