USD/JPY Price Forecast – US Dollar Pulls Back to End Week Against Japanese Yen

The US dollar pulled back from the ¥112 region during the trading session on Friday as we continue to see this market looks strong, but quite frankly a little bit of profit-taking heading into the weekend makes sense. Furthermore, the Manufacturing PMI figures out of the United States were less than anticipated, so a little bit of selling probably jump into the market at that point as well. Nonetheless, the Japanese economy seems to be heading into a recession so that will continue to weigh upon the Japanese yen going forward.

USD/JPY Video 24.02.20

I do like the idea of buying this pair, but I think this pullback is a bit necessary. I would be interested in getting involved somewhere closer to ¥111, and most certainly would be at the ¥110 level. If we break above the recent highs at basically ¥112.25, then we would continue to reach towards the ¥114 level. I think we get there one way or the other, but I prefer the pullback in order to take advantage of “cheap dollars.”

Remember, the US dollar has the attention of the world, as it is the strongest economy right now and there is a bit of a dollars shortage when it comes to liquidity issues at various places around the planet. Ultimately, this is a market that should continue to be looked at one as to whether or not it is offering value, as we have broken above the ¥110 level which I consider to be “fair value” as it was the middle of the larger consolidation area between the ¥105 level and the ¥115 level.