USD/JPY Price Forecast – US Dollar Struggles at 109 JPY

The US dollar has rallied initially during the trading session on Monday but gave back the gains near the ¥109 level, which is an area that we have seen quite a bit of resistance previously. At this point in time, if the market were to break above the recent highs, then I think we probably go looking towards the ¥110 level. However, it is likely that we will see some type of pullback in order to find a bit more momentum to the upside. After all, we have been nothing short of parabolic lately so it would make sense that we pulled back in order to calm things down.

USD/JPY Video 23.03.21

Underneath, I believe that the ¥107 level would be a perfect entry point if we get an opportunity to buy this market, so I do believe that the market will be looking for an opportunity down there. However, we could also break above the recent highs and go looking towards the ¥110 level, which of course will be a larger level that a lot of people will be struggling with. If we were to break above there, then it is likely that the market will continue a much longer-term move to the upside.

That longer-term upside move could be as high as ¥115 over the next several months, but quite frankly I am a bit skittish about putting a lot of money into a market that goes even further to the parabolic side. However, keep in mind that if the interest rate differential between the United States and Japan starts to widen yet again, then this pair will almost certainly go higher.

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