USD/JPY Price Forecast – US Dollar Rallies Again Against Yen

I have been hoping for some type of significant pullback in this pair because we had seen such a major move to the upside that I would like value to come back in and offer an opportunity to get long. However, it is possible that the market will simply go sideways from here in order to work off the excess froth that we have been witnessing. In other words, we could be forming some type of bullish flag, but I still am somewhat hopeful for the idea of a pullback towards the ¥107 level. If we do not get it, then we are going to the ¥110 level rather quickly, which is a large, round, psychologically significant figure.

USD/JPY Video 26.03.21

If we can break above that level, then we will continue the uptrend and this pair will probably go much higher. A lot of this comes down to the interest rate differential between the two countries, which continues to widen over the longer term. Furthermore, there are a lot of concerns out there that could have money running to the US from other places are right now, as seen in other markets. All things being equal, I have no interest in shorting this market, but am rather hopeful that I will get an opportunity to pick this market up “on the cheap.”

One other way to look at this is to notice whether or not other currencies are rallying against the Japanese yen. If they are, then it is probably easier to buy those against the Japanese yen that it is the dollar. However, if the other currencies are not rallying against the Japanese yen, then this is purely a uniquely US dollar move.

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