USD/JPY Price Forecast – USD Continues to Stall Against Oversold Yen

The US dollar rallied a bit during the trading session on Thursday but gave back the gains as it looks like we are running out of momentum. At this point in time, I believe that the market will probably find support at multiple areas underneath, with the first place of course be at the ¥108 level. After that, then the next logical place is going to be at the ¥107 level, ¥106 level, and so on. That being said, it should be noted that the “golden cross” has just happened, and that will attract a certain amount of attention. With that being the case, I think that longer-term traders are waiting to get in on some type of pullback.

USD/JPY Video 12.03.21

The US dollar has been grinding higher for some time, but at this point you would have to think that we are a little overbought. With that being the case, the market is likely to continue to be very noisy, but ultimately it is in the midst of changing the overall trend and this will course continue to be the case if we were to see interest rates spike again in the United States. That of course has been like a rocket fuel for the greenback against the Japanese yen as the interest rate differential has been widening quite drastically. With this, I believe that it is only a matter of time before we continue the uptrend, but I need to see some type of value reenter the picture as we had gotten far ahead of ourselves. Ultimately, I think this is a “buy on the dips” type of market.

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