USD/JPY Price Forecast – US Dollar Finds Support

The US dollar has initially pulled back a bit during the trading session on Monday, but then turned around to break back above the ¥108 level. This is a very bullish sign, as it looks like we are finally looking at some type of stability in the marketplace. The US dollar should continue to go higher against the Japanese yen based upon the price action, perhaps looking towards the ¥110 level as well. The 50 day EMA currently is sitting sideways at this level, and it looks like it is trying to support the market.

USD/JPY Video 27.04.21

Furthermore, we also have seen the 38.2% Fibonacci retracement level hold, so that typically means that you will see more momentum for a bigger move. Ultimately, even if we do break down a bit from here, I think there are several areas where the buyers could return, not the least of which would be the ¥107 level and the 200 day EMA sitting just below there. With that in mind, I have been very patient and been waiting for some type of opportunity to get long, and it now looks as if we are trying to make that happen.

Pay close attention to the interest rates coming out the United States, because if we start to see those spike again, then that could be the catalyst for this market to go much higher. Remember, this pair tends to trade in a very sensitive manner to the interest rate differential between the 10 year bonds for both countries, so you can go to the Internet and search for divergence of those rates in order to give you an idea as to which country should lead the way.

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