USD/JPY Price Forecast – US dollar rallies

The US dollar has rallied against the Japanese yen during trading on Tuesday, using the ¥110 level as an area to take off from. That being the case, it’s very likely that we will continue to see volatility with an upward tilt. However, there are several areas that I’m paying attention to above that could cause a bit of trouble. The initial one of course being the ¥111 level, as it is a large, round, psychologically significant figure, and then after that we have the ¥111.50 level that is the beginning of relatively significant resistance that extends to the ¥112 level.

USD/JPY Video 27.03.19

At this point, I like buying pullbacks as the ¥110 level should continue to offer a lot of psychological importance, and the Monday shooting star of course has a lot to do with what makes me think that’s going to be the case. With that being the case, I like buying short-term pullbacks that offer little bits and pieces of value, as we can take advantage of what seems to be a very hard floor, at least in the short term. Looking at the longer-term charts, I believe that the ¥110 level is essentially going to be the “floor”, while the ¥111.50 level is essentially the beginning of the “ceiling.” With that being the case, it’s a simple back and forth type of trade and as we are closer to the bottom of the range, it makes sense to start buying again as this market seems to be offering value.

Please let us know what you think in the comments below