USD/JPY Price Forecast – US Dollar Goes Straight Up In The Air

The US dollar has rallied significantly during the course of the trading session on Friday, as we continue to see the dollar absolutely pummeled the Japanese yen. With that being the case, it is obvious that we are going to go looking towards the ¥110 level, an area that should attract a certain amount of attention due to the big figure and the headline noise that will be part of hitting the big figure. Nonetheless, this is a market that is obviously bullish, and therefore you have to look at it through that prism.

USD/JPY Video 29.03.21

At this point, any pullback at the ¥110 level will more than likely be a buying opportunity, because we have had an impulsive move to the upside and now have worked off some of the froth to continue going higher. Quite frankly, I wish that we had more of a pullback, but we did not, and this is a market that we are stuck with. That being said, if we pull back into the consolidation area after testing the ¥110 level, I will anticipate that we would have buyers jumping in.

On the other hand, if we simply break through the ¥110 level, then it becomes a bit of a floor and we simply look for a move towards the ¥112 level. The interest rate differential between the United States and Japan continues to favor a move higher given enough time, but at this point one would have to think there is going to be some type of occasional correction and what is a very strong marketplace.

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