USD/JPY Price Forecast – US Dollar Strength ReturnsThe US dollar has rallied against the Japanese yen during the trading session on Friday, as the market looks as if it is trying to turn the trend back to the upside.
The US dollar has rallied again during the trading session on Friday to turn the trend back to the upside for the pair. Ultimately, this is a market that I think will continue to see influence coming in from the bond market in America, and of course the rates differential between the two currencies. With that being the case, I think it is only a matter of time before we see a return to the uptrend that has been so strong. We have bounced rather significantly during the day from an obvious support region, so this is a simple continuation of the overall attitude.
USD/JPY Video 12.04.21
The ¥110 level my cause a little bit of trouble, but at the end of the day I think it is nothing but a speedbump towards the highs again. Keep in mind that the interest rate differential is rather large, and that will probably continue to be an issue. With this being the case, I do think that we will reach the highs, and perhaps even breakout towards the ¥112 level. With that being the case, it certainly looks as if the uptrend is still very much intact, and there is no reason whatsoever to fight this type of move.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
We have had a nice correction, and now it looks like everybody who has missed the trade is wanting to get involved. I believe that the ¥109 level has shown itself to be the “floor the market” at the moment, and as I record this we are breaking through resistance over the last couple of days. Ultimately, the trend has changed.
For a look at all of today’s economic events, check out our economic calendar.