USD/JPY Price Forecast – US Dollar Continues to Rally Against Yen

The US dollar has been like a freight train running acraoss the Japanese yen over the last couple of weeks, but when you look around the Forex markets, this is more or less the Japanese yen story than it is a US dollar related one. After all, we have seen the Japanese yen crater against the British pound, the Swiss franc, and the Australian dollar. In other words, against almost anything. This does not even count the XAU/JPY spot market.

USD/JPY Video 15.10.21

With this being the case, I think that any pullback towards ¥112.50 should be looked at as a potential gift, one that you should be taken advantage of. To the upside, we still have to deal with the ¥114 level, and I do think it is a major barrier that we need to get beyond in order to continue going higher. I do think that a pullback is the most likely of scenarios, and I do think that a lot of people would look to that as a potential opportunity.

In fact, I just do not see a scenario in which you would be selling this pair anytime soon, because even while this is going on, we are starting to see the US dollar take it on the chin against other currencies. In other words, this is all about the yen and not about the dollar. Because of this, I think you need to be cautious with your position size but clearly there is only one direction you can be trading at this point. Given enough time, I do think we go much higher.

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