USD/JPY Price Forecast – US dollar rallies again

The US dollar has rallied significantly during the trading session on Friday as we reach towards the ¥112 level, an area that I have had marked on my chart for several weeks. At this point, we are pressing the very top of the selloff that we had seen before the crash, which is very similar to what we see in the S&P 500. Because of this, I believe that the two markets are trading off of each other, something that we used to see all the time.

USD/JPY Video 04.03.19

If we can break out in the S&P 500, this pair will break out as well. If we fail over there and roll over, that will send this pair right back down. That being said, I would be hesitant to start shorting this pair, but you are buying right into resistance if you go along here. I would probably step back and see if we can clear the ¥112 level on a daily close before putting money to work. If we don’t get that, perhaps some type of massive negative candle could be a signal that we are ready to break down. This is probably one of the more dangerous pairs right now, as it seems like we are teetering on some type of bigger move considering how much of a grind it had been to the upside. Caution is the better part of valor over here as this pair has become more dangerous with this move. The easier move was always to the downside.

Please let us know what you think in the comments below