USD/JPY Price Forecast – US Dollar Continuing to Recover Against Yen

The US dollar has rallied a bit during the course of the trading session on Tuesday to break above several long wicks on the chart. This suggests that we are starting to pick up a bit of momentum, and that of course is something that would be a continuation of the overall uptrend. Ultimately, this is a market that suggests we are going to see a continuation of the move higher, and if interest rates in the United States can continue to strengthen a bit, then it is likely that we will see the US dollar remain much more attractive than the Japanese yen.

USD/JPY Video 28.04.21

Looking at this chart, it is not until we would break down below the hammer from a couple of days ago that I would be concerned about this recovery, because if we do then it is likely that the market goes down to the 200 day EMA. Breaking down below there would then in the uptrend. All things being equal, this is a market that I think will see a lot of action based upon the idea of interest rate differential between the two bond markets. All things been equal, then we could go testing the highs again at the ¥111 level.

I do think this is going to continue to be very volatile, but I believe that the attitude of the market will be a bit skittish at times. It is worth noting that the 50 day EMA and the 38.2% Fibonacci retracement level both have shown signs of support as well, so with that being the case it is likely that there are a lot of traders trying to take advantage of a resumption of the previous uptrend.

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