USD/JPY Price Forecast – US Dollar Leaves No Down

The US dollar finally did it, breaking through that resistance barrier just above the ¥115 level against the Japanese yen. This is an area I have been watching for a very long time and quite frankly was a bit surprised to see how quickly we sliced through it overnight. While I did expect this move eventually, I anticipated several attempts going forward, especially considering that Friday is the nonfarm payroll announcement. That being said, it is what it is, and we have clearly suggested where we are going next, and that is much higher.

USD/JPY Video 05.01.22

When you look at the monthly chart, you can see it for what it is: a major breakout. With that in mind, every dip forward will be bought, with the sole intent on building up an even bigger position. I suspect that when you look around the Forex world now, that will probably be the same with almost any Japanese yen related pair. This screams “risk on”, so it will be interesting to see how other markets around the world behave as a result. All things been equal, this is a good sign, and it does suggest that we are going to go much higher. Ultimately, the next major area of potential resistance is probably the ¥117.50 level.

To the downside, the ¥115 level has now become a major floor in the market and I think it will be difficult to see this market breaking back down below there again. Yes, we will get the occasional pullback, but that should be thought of as a potential buying opportunity, as the market has finally made up its mind with a resounding move.

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