USD/JPY Price Forecast – US Dollar Finding Gravity an Issue

The US dollar has rallied all the way to the ¥109 level during the trading session on Tuesday, in what has been an extraordinarily parabolic move. Because of this, I do think that it is only a matter of time before we pull back, if for no other reason than to try and find some type of support. After all, markets cannot move straight up in the air forever, so it would make quite a bit of sense that we see a pullback. As you can see on the chart, I have a line every 100 pips at a big handle, such as the ¥108 level, ¥107 level, etc. Because of this, the market is likely to see some type of supportive action underneath on a pullback, and I will be looking for a daily hammer, or something like that in order to take advantage of what has been an obvious trend change.

USD/JPY Video 10.03.21

Underneath, the 50 day EMA is getting ready to cross the 200 day EMA and the so-called “golden cross” but buying this pair all the way appear would be reckless to say the least. You would probably need something along the lines of a 400 pips stop loss in order to get involved. At this point, I am waiting for pullbacks to get involved, and would be especially interested near the ¥107 level, but recognize I will have to take what is offered to me. I will check this at the end of every trading session and look for that trade signal.

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