USD/JPY Price Forecast – US Dollar hits major round figure against Yen

The US dollar has reached towards the ¥110 level against the Japanese yen during trading on Thursday but looks as if it is trying to pull back from there. The massive selloff just above should continue to keep pressure on this market as we have gotten a bit ahead of ourselves. Typically, this pair will fall in times of “risk off”, but in general it looks as if the market is more worried about hoarding US dollars than it is the mechanics of this pair. Ultimately, I think it is only a matter of time before we rollover, so I’m looking for signs of exhaustion that I can take advantage of.

USD/JPY Video 20.03.20

To the downside, I think a move to the ¥108 level is not out of the question, perhaps even lower than that. We will have to see how this plays out but clearly, we are starting to get a bit overdone given enough time. Ultimately, if we break above the ¥110 level decidedly, then the next target will be the highs where I would expect to see sellers again near the ¥112 level. It’s likely that the market continues to be very rocky to say the least, but that should not be much of a surprise. That being said, I believe that an opportunity is starting to present itself, for those who can hang on to what is most certainly going to be a very volatile situation.