USD/JPY Price Forecast – Us Dollar Gets Crushed Against Japanese Yen And Safety Bid

The US dollar has been crushed against most currencies around the world during the trading session on Monday, and especially against the Japanese yen as it is without a doubt the best performer globally. This as markets are falling apart, and at this point it’s likely that the Japanese yen will continue to attract a certain amount of attention, but at this point it is most certainly in oversold pair. I think at this point it’s very likely that any type of rally will be looked at with suspicion. Don’t be wrong, it does not mean that the market can bounce, just that it probably won’t be able to hang on to the gains until we get some significant structural changes.

USD/JPY Video 10.03.20

At this point, the ¥100 level could very well be the target but it’s going to be difficult to imagine a scenario where the Bank of Japan doesn’t get involved sooner or later. If and when they do, that could create a massive turnaround in the short term. The Bank of Japan does have a history of intervening closer to the ¥100 level, so at this point it’s an area that you need to keep in mind. In the short term, any rally towards the gap from the opening of the session, near the ¥105 level, will be thought of as potential selling opportunities. If we can clear that area to the upside, then it’s very likely that we go to the ¥107.50 level or we will see the next target of sellers to get involved. One thing is for sure, the “risk off” attitude has just accelerated.