USD/JPY Price Forecast – US Dollar Pulls Back

The US dollar has fallen a bit during the trading session on Tuesday against the Japanese yen, but quite frankly this is a market that has been overdone for some time. When I look at the chart, you can see that the last several candlesticks on the daily timeframe have formed wicks to the upside, telling me that this market is getting a bit exhausted. That does not necessarily mean that you should be a seller of the market, but you should be aware the fact that a pullback is probably necessary.

USD/JPY Video 24.03.21

That being said, I think that every time we get to new handle, there will probably be people willing to jump in and pick up a bit of value. For example, the ¥107 level would be an area where I think there would be plenty of buyers, and then of course the ¥106 level. The ¥106 level will more than likely features the 50 day EMA by the time we would get down there, so I find that to be one of the more interesting places to get long of this market.

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On the other hand, we could just kill time in this area for even longer, eventually breaking towards the ¥110 level. Either way, I have no interest in shorting this market because quite frankly this market has been very strong for a reason, namely the fact that the interest rate differential between the two countries continue to see a widening. With that in mind, I am simply sitting on the sidelines to look for opportunities to get long in what has been an obvious shift.

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