USD/JPY Price Forecast – US Dollar Falls Against Yen Finally

The US dollar has formed a rather nasty looking candlestick against the Japanese yen, which has been far overbought for some time. At this point, I would not be a seller though, as I have been telling you here at FX Empire, this is a market that you need to be patient with and look for a buying opportunity. Part of the catalyst during the trading session is going to be the fact that the 10 year yield dropped below the 1.7 level in America, so the yield differential is not as drastic as it was just a week ago.

USD/JPY Video 07.04.21

If you look near the 1.09 level, you can make a strong argument for plenty of support, so I think that is about as far as we go. I would really like to see the ¥108 level, but I do not know that I am going to get that opportunity. I will play this on a day by day basis, looking for some type of daily supportive candlestick in order to get long. That being said, this is a market that looks very bullish, at least in the short term so I am going to simply sit on the sidelines and wait for my opportunity, just as I had been doing for the last several days.

What I have done is I sold the NZD/JPY, because quite frankly the New Zealand dollar looks sick to say the least, and if the Japanese yen is going to get a bit of short-term strength, so that is where I played this. It is about a process called triangulation, when you look at the NZD/USD, USD/JPY, and figure out where you should trade the NZD/JPY pair.

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