USD/JPY Price Forecast – US Dollar Climbs Again
The US dollar has rallied significantly during the trading session on Wednesday as we attacked the ¥106 level. Ultimately, this is a market that I think if we can make a fresh, new high, it will continue to show what I believe is an overall trend change in general. We had broken significantly above a downtrend line, and now are starting to grind higher to get above the 200 day EMA. At this point, I think there would be a lot of noise but pay attention to the 10 year note, because as yields rise, that should send this market higher due to the interest rate differential.
USD/JPY Video 25.02.21
The US dollar of course is typically thought of as a “safety play”, but at this point in time the Japanese yen is a “safer currency” than the greenback. Ultimately, this is a market that looks as if it is ready to turn things around from a longer-term standpoint, so I think that buying on the dips continues to work out as long as we can stay above the ¥105 level. If we were to break down below there, then we may have to “reset”, but it should be noted that yields are spiking in America, as I write this. If that continues to be the case, this is a market that almost certainly looks as if it will continue to go much higher. The size of the candlestick is something to pay attention to as well, but I think this is an area where we have to make quite a bit of noise in order to finally get clarity.
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This article was originally posted on FX Empire
