Yahoo Finance USD/JPY Price Forecast – US Dollar Continues to Crush Japanese Yen
The US dollar has rallied significantly during the session on Friday to continue breaking higher in what has become a bit of a parabolic move, but at this point in time the only thing you can do is wait for some type of pullback if you are not already involved in this move. The ¥107 level underneath is significant support, as it had been significant resistance. I have no interest in shorting this market, despite the fact that I can see by simply looking at it that we are overbought. This is obviously a trend change, so at this point in time you need to wait for an opportunity to get involved. When a market gets this parabolic, it is only a matter of time before the weight of gravity gets involved.
USD/JPY Video 8.03.21
I like the idea of buying dips, and it is also worth noting that the “golden cross” is about to happen and certain longer-term traders will buy-and-hold based upon this. We probably have support down at the ¥106 level as well, so it is not until we break down below that level at the very least that I would be convinced that the trend change is failing. With this being the case, the market is simply one that you have to wait on and to see some type of support after a pullback and enter a “buy-and-hold” type of scenario. To the upside, I would suspect that we could go to the ¥110 level before it is all said and done, and quite frankly I would not be surprised at all to see it go much higher than that.
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This article was originally posted on FX Empire
